First Investment Property: Success

[Collin Hart]

Investment Info:

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

Purchase price: $109,000
Cash invested: $40,000

BRRRR ; uninhabitable property when purchased. Immediately addressed structural issues and renovated upper unit to get cash flowing via Airbnb. Build lower unit out of pocket over a 1 year period and filled with a full time renter.

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

year round vacation destination. low cost to enter market, great cashflow after renovation

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

MLS listed property, poorly described and marketed. Appeared to be a very scary, undesirable property from the online listing.... which it was. I Saw the opportunity, went to see it in person, made a 10% lower offer with a letter to the owner about myself and my intentions with the property.

How did you finance this deal?

Local bank 15 year mortgage, which was our only option at the time. 20% down out of pocket. rehabbed out of pocket.

How did you add value to the deal?

only half of the sq ft. was usable at time of purchase. Fixed structure and renovated to make 2nd unit habitable.

What was the outcome?

a legal 2 family vacation destination that prints money.

Lessons learned? Challenges?

Time is money. Cant do everything myself. expand my network of resources.