My first real estate rental investment, closed August 2019.

[Timothy W Hanson]

Investment Info:

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

Purchase price: $400,000
Cash invested: $20,000

My first investment is a 4-plex in New Richmond WI. I wanted to take advantage of the FHA loan option while picking up four "doors" at once. New Richmond Wisconsin is 45 minutes East of St. Paul MN and scheduled to be one of the fastest growing cities inside Wisconsin over the next two decades. After all expenses, the cash flow for this property is currently $800.00. It could be more, because right now the current leases are beneath market value and each could be raised by $100 over the next year based on the neighborhood. Each unit has 2 bedrooms, a living room, a patio in the back.

[Anthony Wick]

@Timothy W Hanson

I closed on a duplex this month. My 3rd duplex in the last 18 months. Terms were 20% down, 25 year amort, 4.6% interest, with a 10 year balloon. Just to give you an idea what's possible in the Midwest. This was a commercial loan in my LLC with a local bank. I also have an FHA loan on a prior duplex. And at 3.75% for 30 years fixed the PMI is just a cost of doing business.

Property taxes here are even higher. $285k value duplex comes in at about $6,500 property taxes. No escrow for taxes and insurance in the LLC. Just like capex and the like, just have to be diligent in those reserves every month.