My first Real Estate investment

[Kyle Vogt]

Investment Info:

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

Purchase price: $90,000
Cash invested: $6,000

Large Triplex built in the late 1800's. Two of the units are 1 bedroom, 1 bathroom and one unit is 2 bedroom, 1 bathroom. Located in really nice neighborhood walking distance to almost everything in town (small town).

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

My original investment strategy was (and still is) buy and hold. i wanted to "BRRRR" properties and this one fit the criteria.

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

Driving for Dollars, the person i purchased the property from was also an investor and started his real estate career the same way in the 80's. He was really easy to work with, excited for me to start my career in real estate, gave me great advice and answered a lot of my questions.

How did you finance this deal?

I used an FHA loan at 3.5% down with the intent to live in the property and house hack

How did you add value to the deal?

i used an unsecured line of credit ($10,000) to update the 2 bedroom apartment, plumbing, electrical, paint and flooring. i did most of the work myself

What was the outcome?

i was able to bring rents up 26% from $1,575 to $1,985. I am currently working on refinancing.

Lessons learned? Challenges?

Lessons learned are that it will be much quicker and (probably) less stressful to hire out the work that needs to be done. I spent a lot of time learning how to do things and spent unnecessary amounts of money fixing my mistakes. i am glad i did this on my own to know that i can do it if needed though