My First Home is my First Investment Property

[Cody Jackman]

Investment Info:

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

Purchase price: $38,000
Cash invested: $15,000

First property, I live in the 2 bedroom 1.5 bath house, there is a detached garage with loft style apartment that I plan on short-term renting as I continue to inject forced appreciation into the property and drive down the mortgage to increase equity before I resell.
*Update* 2020- Appraised for $45,000 more than invested

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

The need for a home, and potential to cash flow

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

Private deal, non MLS. Buyer approached me and they were highly motivated to sell

How did you finance this deal?

Construction loan at first, then refi into conventional

How did you add value to the deal?

No one wanted to buy the property because of how distressed it was

What was the outcome?

Used the local bank as a lender and closed through an attorney, all without ever meeting the buyer

Lessons learned? Challenges?

Lots