Buy live and Hold success!

[Ryan Harsche]

Investment Info:

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

Purchase price: $305,000
Cash invested: $25,000

Buy, Live and Hold. Bought it with an FHA loan and lived in one unit. Rented out the second unit. Now, both units are rented and the house is worth about 100K-125K more than the purchase price.

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

Easiest way to get into investing is to buy, live and then hold!

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

A real estate agent I was working with at the time found this on the MLS.

How did you finance this deal?

FHA financing.

How did you add value to the deal?

I did not put any work into the home. The value was added by buying in a really good area that was appreciating.

What was the outcome?

I still own it and plan to own it for many years to come.

Lessons learned? Challenges?

I do wish that I did a FHA 203K loan where I could have financed some cosmetic repairs. However, I almost think I'm better off not having the nicest rentals in the area. The Francisville area of Philadelphia is very saturated with new construction apartments that may not be affordable for some people. So I think by having a cheaper rental, I have less probability of vacancy.