Our First Real Estate Purchase

[Aaron Macpherson]

Investment Info:

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

Purchase price: $219,000
Cash invested: $13,000

Contributors:
Leslie Macpherson

Our first real estate investment.

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

We knew getting a multi family would make our out of pocket payments lower. So we moved into one side of the duplex and the other tenant payed a majority of the mortgage. Then we moved out and rented out the side we were in. Now it has positive cash flow

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

Used a local realtor, and she helped us negotiate our buy price

How did you finance this deal?

Used a mortgage broker that was in our town

How did you add value to the deal?

We added value by adding a fenced in back yard and deck to one of the units.

What was the outcome?

We have a positive cash flow and still own it. We have had it 3 years now and it has increased in equity.

Lessons learned? Challenges?

We had to learn to be landlords and manage rent money and form rental agreements.

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

I would not recommend her for another investor. She did not know much about investing in real estate or multi family housing. We had to do our own due diligence.