First jump into the investing game

[Jacob Larsen]

Investment Info:

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

Purchase price: $102,500
Cash invested: $110,000

It is a fixer-upper, but fully rented out and cashflows 300 a month. Good entry-level property

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

looking for multi-family in Cedar Rapids

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

on MLS, listed for 124,000. Made an original offer for 92,500. Seller came back at $105,000. The thing was run-down and had bug infestation. I used the seller's agent who talked him down to $102,500. Have put around $9,000 in to get the mechanicals and curbe appeal up to

How did you finance this deal?

cash equivalent. Won't be able to do that much going forward

How did you add value to the deal?

new deck, front entry stairs, new landscaping, removed weed overgrowth, exterminated pests, fixed some siding and roof damage, fixed clogged plumbing, replaced fixtures, improved drainage, added structural posts and reinforced basement joists.

What was the outcome?

happy tenants. Cashflowing.

Lessons learned? Challenges?

It is annoying having your money tied up for 6 months. Next time I may just finance my deal

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

Yes. Jonathan Doerrfeld. Very good person and agent