first Investment property

[Walter Correia]

Investment Info:

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

Purchase price: $282,500
Cash invested: $47,000
Sale price: $402,000

3 units rented for four years under my management. Great cash flow.

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

We saw the potential for cash flow and appreciation.

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

My wife found it while driving around town. We told the seller that we were starting a family after the purchase.

How did you finance this deal?

3.5% down FHA.

How did you add value to the deal?

Added a new kitchen to one of the units. Opened up some walls and allowed more more natural light in.

What was the outcome?

We sold the property to capture the appreciation.

Lessons learned? Challenges?

We could have lived at the property for an extra 6 months and avoided sales tax.