1st investment purchase

[Patrick Haug]

Investment Info:

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

Purchase price: $174,900
Cash invested: $50,000

This was my original investment purchase, a two family building.

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

I was particularly interested in this location of this two family building. It was very near a popular entertainment district and the building had been recently update.

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

Actually, I was shopping for real estate deals and was speaking to a friend who had the same interests. He directed me to a real estate agent who had a relationship with a local investor. This investor was about to complete the building and place it on the MLS. I got in before it went live and got it in contract.

How did you finance this deal?

This being my first deal, I used a VA loan - no money down. Since I had limited funds but limitless interest, this was a good fit.

How did you add value to the deal?

Time. I held this investment for a long time. This investment weathered the downturn and I eventually was able to harvest my labor investment in 2018.

What was the outcome?

I believe I timed the real estate market well. I sold this investment and placed the proceeds into a 1031 Investment Property Exchange.

Lessons learned? Challenges?

This was my first investment. The lessons wrapped up during this ownership define the type of investor I am today. I learned the value of finding good contractors and paying them well. In essence, value quality work over cost savings.