First Investment Property

[Roger Brogan]

Investment Info:

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

Purchase price: $320,000
Cash invested: $80,000

Contributors:
Tia Brogan

This deal is a fixer-upper duplex, purchased with my partner for $320,000. Used conventional financing at 25% down.
We plan to invest an additional $80,000 to get her rent ready. We believe the ARV will be north of $450,000 once renovations are complete.
Additionally, we plan to pull ~$1,500 in net cash flow each month. This being my first deal, and purchasing her the day we went under a national emergency due to the covid-19 pandemic has been a whirlwind, but things are looking up.

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

I like the cost effectiveness of investing in mulit family deals.

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

I found the deal on Zillow, and we paid full asking price. We wanted to negotiate the deal, but because we knew there were already 2 cash offers on the table we just went in at full ask.

How did you finance this deal?

25% conventional financing.

What was the outcome?

Currently a work in progress. We are almost done with all the demo, and because of Michigan's stay at home order we are unable to get a dumpster so our backyard if filling up quick.

Lessons learned? Challenges?

First lesson learned is to request a longer timeline to do our due diligence. We only had 5 days to get all of our inspections done. If we had more time we would have been able to negotiate the price lower.