Our first Investment Property

[Account Closed]

Investment Info:

Small multi-family (2-4 units) other investment.

Purchase price: $192,000

We built this home in 2016 for 192,000$ (valued at 240,000$)
- no money down (sweat equity instead)
- we just finished building the basement unit this year 
New value is at 320,000$

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

Building our own home made us realize the potential in using no money down - Auto Construction Loans for investments. This property was our first try at investing.

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

The land was extremely inexpensive for the area because it was a problem lot. There was a huge hill that took up 3/4 of the land and you could only build on 1/4 of it, you also had to do a slope stability report and build a retaining wall at the bottom of the hill which scared most buyers and made the seller lower his price. Thankfully with our studies in architecture we were able to figure out a way to design a small duplex and maximize the potential of this property.

How did you finance this deal?

Using an Auto Construction Loan from a local credit union

How did you add value to the deal?

By building from scratch and below market value as well as by adding a lower unit