My first real estate purchase in DeKalb, IL

[John S.]

Investment Info:

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

Purchase price: $131,000
Cash invested: $32,750

Converted single-family home to two units and a third unit in the rear of the property. 3 bed, 2 bed, and 1 bed.

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

Cashflow

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

Found a local investor via property tax search and called him after finding his website. I went and viewed 80% of his properties and picked the one that makde the most sense numbers wise.

How did you finance this deal?

Conventional loan through a mortgage broker. I opened up a HELOC on my primary residence as a safety net.

How did you add value to the deal?

None at this time.

What was the outcome?

A good cash-flowing property to own.

Lessons learned? Challenges?

Much of the major appliances are dated. I've had two furnaces quit within the first year. I forgot about a home warranty that was purchased along with the sale for replacing the first and made a $2000 mistake. On the second I remembered the home warranty and contacted them for the replacement.