My first real estate investment deal

[Corey Block]

Investment Info:

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

Purchase price: $117,000

Fix and flip and hold. BRRRR Deal, got paid at closing.

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

I like that multi family spreads risk. When I ran the numbers I could see that one unit rented would keep the property at break even, full would make a great return.

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

Found through a local classified ad

How did you finance this deal?

I paid cash for the property and paid for the rehab with a line of credit, credit cards and charge accounts at various building material stores.

How did you add value to the deal?

It duplex was completely gutted when I bought it.

What was the outcome?

I ended up with around $117,000 tied up in the property and it appraised at $168,000. I was able to use a local credit union to refinance 75% LTV, so I pulled about $9,000 out of the deal at closing.

Lessons learned? Challenges?

I did too much of the work myself, which saved money but allowed to project to drag on too long.

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

Worked with a local realtor that was great! Kirby Smith