My first rental purchase EVER!

[John Daniels]

Investment Info:

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

Purchase price: $51,000
Cash invested: $6,000

After months and months, I finally made my first rental property purchase (Triplex). Asking price $54,900, purchased for $51,000, using small cash down payment and HELOC. Should net $300/month.

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

I like 3-4 plexes for the cash flow and security if a tenant moves out, the note is still covered.

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

Found the deal on MLS. Used the BP calculators and found the ideal number and used that as the offer amount.

How did you finance this deal?

$6000 cash and HELOC from current residence.

How did you add value to the deal?

I was able to make a purchase during the covid lockdown. Also during the negotiations, I was able to have the seller make a bunch of repairs.

What was the outcome?

I have a buy and hold rental property - (My first- Fantastic!) that should net around $300 per month.

Lessons learned? Challenges?

It was great to have my property manager and real estate agent do the final walkthrough together.
COVID challenges were overcome using technology.

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

Andrew Southard from the BH Terre Haute office was amazing!

[John Daniels]

Originally posted by @Marty L.:

Congratulations! What made you choose Indiana out of all places? 

I am also very close to jumping in OOS investing and would love your feedback! 

Wishing you the best of luck! 

I am in the Phoenix market, but I didn't have a lot of cash and the market is too hot. I wanted to jump in without a lot of risk, so a low price point was important for me. I don't have friends and family with tons of cash, so I wanted to do the first deal on my own to build confidence. Also, for the short term I was okay with a cash flow of $100/door but I was looking for >15% COC return.

This was my first property so I also wanted to have a learning experience of building remote teams, which added some risk to the deal.

Challenges for me:

1. New investor

2. Minimal cash available

3. Limited experience building remote teams

4. Local market was unaffordable

BP solved the problem for me! Love this community!

Hope this helps.

Hope this helps!