Just sold my first investment property. Here's what I learned

[Tyler Edic]

Investment Info:

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

Purchase price: $93,500
Cash invested: $40,000
Sale price: $103,500

My first investment. Two family home in Oswego, NY. I lived in half and rented the other, then repaired each apartment myself as the other half was rented. I wrote off these expenses as well.

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

I knew that I wanted to buy a duplex when I graduated from college so I could have tenants pay my mortgage, and roommates help with mortgage and utilities. I knew nothing about investing or home repair at the time.

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

I used a Realtor, who I was not particularly pleased with. I don't feel that she was acting in my best interest when I purchased this home.

How did you finance this deal?

FHA fixed 30-year mortgage

How did you add value to the deal?

Renovating apartment B while I lived in apartment A.
Renovating apartment A once I moved out and tenants moved into apartment B.

What was the outcome?

I think it's a wash financially but I learned a lot about home repair, finding deals and closing, selling homes, and being a landlord. It was my first home and first investment, so I did not do the diligent bookeeping I plan to do on future investments

Lessons learned? Challenges?

I would make only the necessary repairs to my next rental apartment, targeting high ROI improvements. I will also target higher-end tenants in the future, and digitize the entire landlord process. Additionally, I plan to invest in areas with greater demand so that my future investments appreciate more than my first home did. I learned a lot during this process.

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

Paragon Home Loans in Syracuse, NY