My 1st Real Estate Deal

[Erickson Rosario]

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Lodi.

Purchase price: $340,000
Cash invested: $41,900

I recently closed on my first real estate deal. The unit is a 2 unit multi-family property. Cash flows around $700 per month. Great investment!

What made you interested in investing in this type of deal?

I wanted to start my real estate investing journey as early as possible and get on the path to financial freedom.

How did you find this deal and how did you negotiate it?

I found the deal through the MLS. I negotiated $5k off the asking price and the property was listed below market value as the seller wanted a quick sale to use the proceeds to retire.

How did you finance this deal?

I used a local lender to finance the deal. I was able to close within 45 days.

How did you add value to the deal?

I renovated both units and finished the basement. Both units currently have updated kitchen, new flooring and updated bathroom.

What was the outcome?

The second floor is rented for $1,700 per month. Currently looking for a 1st floor tenant.

Lessons learned? Challenges?

I learned the value of finding a quality contractor who can complete his work on time and to the highest level of quality. I also learned that it is best to put everything in writing by developing a scope of work before starting any project no matter the size to avoid disagreements and build rapport.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Yes, I worked with an excellent real estate agent and lender who made the process easier.