First investment buy and hold rental property.

[Luke Harrison]

Investment Info:

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

Purchase price: $45,000
Cash invested: $5,000

Firat investment property for my girlfriend and I. Two one unit apartments.

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

We had been interested in investing in a multi family previous to purchasing our own home. We decided that neither myself and girlfriend liked our jobs, and realized that if we were to switch carriers and advance our professional careers we would have to take pay cuts, and needed to supplement our income before switching careers

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

We used the same realtor that we used to find our personal family home. We told her that we were interested in beginning our real estate investing endeavor, told her our market, and price range and she went to work for us.

How did you finance this deal?

Traditional

How did you add value to the deal?

Since this property is two one bedroom units, the turnover rate is quite high. The previous landlord was under charging, and with every new tenant we were able to increase rent until we were on par with our local market.

What was the outcome?

We are still holding and cash flowing from this property to this day.

Lessons learned? Challenges?

The biggest challenge was learning how to be a landlord.