First investment property purchased in October of 2019

[Richard Ochoa]

Investment Info:

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

Purchase price: $230,000
Cash invested: $2,000

Used a 0% down VA loan on a Duplex, I am currently receiving $1300 (mkt dictates $1400) in rent downstairs and will receive $1,100 upstairs when I move out. Mortgage, Tax and Insurance is $1349. Technically, after one year my returns should be infinite after all expenses.

The $2000 was paid to the lender, closing, etc..

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

I wanted to lower my expenses in order to continue investing.

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

Found it on the MLS, my realtor did the negotiating.

How did you finance this deal?

VA Loan

What was the outcome?

I live for free, and will have cash flow once I move out in October. I plan to refinance to a conventional loan and use the VA loan again on a 4plex once I fulfill the loan requirement of 1 year.

Lessons learned? Challenges?

I rented out the downstairs, it was my first time ever having tenants. I just did what I heard on the podcast, ran a credit check, background check, looked inside their car, and made sure their income was 3 times the rent.

When my offer was accepted I drove to the property and circled around the block about 4-5 times, I said to myself "what did I just get myself into". Now, I cannot wait for the next property.

So far, I could not have asked for better tenants as a beginner.

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

I worked with a realtor that was an active agent during the recession and has over 20 years of experience. I wanted to compensate for the lack of experience I had. He has been great and gone above and beyond. DM me for his information.