2914 N Stone ST - My first ever real estate investment

[Jared Johnson]

Investment Info:

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

Purchase price: $159,800
Cash invested: $25,000

Triplex rental property located in Spokane WA. It has 2- 1 bed 1 bath apartments and a 2 bed 1 bath apartment with a private backyard and deck for the 2 bed unit. One of the units had been renovated before I purchased it and I had to totally gut and rehab two of the other units. They were a MESS!! but I learned a TON from it. wouldn't have done anything different. Put a new roof and a seamless gutter on it as well as overhauled the landscaping.

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

The thing that made me interested in this type of deal was the fact I do not want to work forever, I want passive income. I have always loved buildings and real estate ever since I can remember. before I thought to even do a deal I had been working my 9-5 job and saving every penny I could and had between 20k and 30k and decided it was time for me to jump. I am really happy that I decided to take that dive!!!

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

I found it through my real estate broker, she specializes in multifamily/real estate investments. Also, because I was such a noobie and paralyzed with fear when the deal became real, I totally relied on her to do pretty much everything for me. After that, the wall of the learning curve came, Renovations, property management, budgeting, Tenant issues, learning what escrow and equity were etc. This all came at me very hard.

How did you finance this deal?

I financed the deal with a FHA loan and HOUSE HACKED!! I love this strategy.

How did you add value to the deal?

I renovated 2 out of the 3 units (can add pictures if wanted), put a new roof on, new gutter, and made the landscaping WAYYYYYY better (weeds taller than me when I bought it, and I'm 6')

What was the outcome?

As of now I still own the property and I raised all the rents 63% and the property cash flows me $978 every month, it is valued between $265,000 and $299,000.

Lessons learned? Challenges?

To keep things short. I learned A LOT!! these past 2 years. How to screen prospective tenants, tenant issues and remedies, property management, renovations and costs associated with it, being my own handy man/ head of construction, keeping emotions out of the deal and day to day challenges, delegating, cashflow, cap rates, GRMs etc ( probably a lot I am missing from that list as well)

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

yes, my agent Melissa Daily in Spokane WA is awesome.