Here We Go My First Investment

[Tyler Simco]

Investment Info:

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

Purchase price: $85,000

Old 2 story home built in 1916 and converted into a up and down duplex. Currently collecting rent from top and househacking the bottom. Made the purchase December of 2017 and have been evaluating my next move.

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

What mostly made me interested was I could BUY a property instead of renting and not have to pay anything besides utilities. Basically living mortgage or rent free! Not only that but it's an investment. Hopefully one of many!

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

Without very little knowledge about Real Estate I found this deal online. One of the listing websites I believe. I brought my interest of the property to my RE Agent. Property was listed at 95k and bought it at 85k. At the time I had no intentions in fixing it up. It was for the most part a turnkey property.

How did you finance this deal?

I financed this deal using an FHA loan. I sold a couple vehicles which happened to be my hobby at the time and put 3.5% down.

How did you add value to the deal?

I don't believe I had much value to add to this deal is I'm still very new to Real Estate. It was pretty straight forward

What was the outcome?

The outcome was living mortgage free and being able to save money for another investment!

Lessons learned? Challenges?

Lessons learned would be to not buy an up and down duplex again. I would rather have a side by side.

My challenges at the moment is the REFI. It seems difficult to get an accurate ARV on the property due to there not being any comps in my area.