Multi family 2 unit investment

[Cody Smith]

Investment Info:

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

Purchase price: $90,000
Cash invested: $14,000

2 unit apartment building.

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

I read Rich Dad Poor Dad when i was 18. I partnered with a family member who was already into real estate investing. That partner paid the upfront money to close and I managed the property. Not knowing what I was doing, and not getting any coaching, I learned through trial and error. I still own that property today and its been by far a better learning experience than any college course I have ever taken.

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

I found this deal on the mls. I had no idea I could negotiate. Again, no help or coaching. So to me, the price was the price. I bought it wrong from the start and have since learned some valuable lessons.

How did you finance this deal?

FHA financing. I "lived" in 1 unit and rented out the other. My partner was the up front cash and I held the mortgage.

How did you add value to the deal?

Not sure if I added value back then. I was enthusiastic about real estate and I had a long term goal in mind. Little did I know the changes that woudl take place over time.

What was the outcome?

I still own the property. It makes a small profit every month. The lessons learned with owning this property has been priceless.

Lessons learned? Challenges?

Lessons - Learn to negotiate, educate yourself, fail fast-fail often-fail forward, learn from your mistakes. Don't let someone else write your story.
Challenges - no one takes a 19 year old seriously and not having credentials to back me.

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

Yes. She is no longer in the business.