1st investment property

[Wesley Hosny]

Investment Info:

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

Purchase price: $160,000
Cash invested: $24,000

Downtown right next to city hall
Retail Store front
(2) 1 bed 1 bath apartments
(1) 2 bed 1.5 bath apartment

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

Help to revitalize downtown. Store front and the 2 apartments which has a 1.16 rent factor (brings in $1,870/month).
This property is local to me which made it attractive and in this market the deal was better than average but needed some work.

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

MLS tired to negotiate but there was a lot of interest. Ended up giving asking because I wanted to get in the game and this was the best deal I had seen after running hundreds of deals through the BP calc

How did you finance this deal?

traditional bank financing 5/1 commercial loan with 5% rate and 15% down

How did you add value to the deal?

some handy man rehab myself changed out the floors and changed a few toilets.

What was the outcome?

Had the vacant property fully rented in 30 days. Small college town helped with that.

Lessons learned? Challenges?

set aside more for repairs than you anticipate no matter what. Changed out a water heater and an hvac since owning the property. I used a 0% interest rate credit card over 18 months to pay for that and have used proceeds from property to pay for the cc.

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

If you are buying in the central kentucky market I would recommend Farmers Bank in Nicholasville, KY. Lowest percentage down payment I have seen and they are easy to work with on the commercial loan side of the house.