My First Deal Yielded me 50K in Equity!!!! Thanks to BP

[Jean Torchon]

Investment Info:

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

Purchase price: $192,000
Cash invested: $16,000

My first Real Estate Transaction. Used an FHA 203k loan to BRRR a two family in Fairfield County. Yielding me 50k in Equity and no mortgage payment after refinancing

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

Leaving my parents home I vowed never to pay rent. Fell upon " The Ultimate Beginners Guide to Real Estate Investing" and was hooked from there.

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

Found this deal on Realtor.com then had my realtor place on offer on hudhomestore.com. I agreed to pay all the closing cost in order to win the bid.

How did you finance this deal?

FHA 203k Financing

How did you add value to the deal?

Did a 57k rehab, including 2 kitchens and 2 baths, also converted the heating from oil to gas.

What was the outcome?

After a year I was able to refinance out of the FHA loan into a lower rate while almost eliminating the PMI. Making it possible for me to house hack an live for free to this day.

Lessons learned? Challenges?

Because this was my first deal, I didn't know how good i had it. But it was all a learning experience.