2 Family. First investment many years ago.

[Michelle Reid]

Investment Info:

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

Purchase price: $265,900
Cash invested: $50,000
Sale price: $300,000

Worked well as a live in income property. VERY badly as a pure income property. Bleeding money towards the end. The rent just didn't cover costs.

Lessons learned? Challenges?

In my market, for residential income, a three family is the minimum # for good cash flow. This was only a 2 family. Our rents were too low.

[Dan Milinazzo]

@Michelle Reid Sorry to hear the deal did not pan out.  The fear of a deal failing is hard to overcome, but getting out and doing it is where you start to see if this is really what you want to do.  If you can survive a not so great outcome and get right back up and move on to the next one, then as our NE Patriots say "on to Cincinnati".  Do you mind sharing your expenses breakdown? 

Best of luck on the next and future deals!