My First Property 2017-2020

[Christopher Wedde]

Investment Info:

Small multi-family (2-4 units) other investment in Rochester.

Purchase price: $165,000
Cash invested: $80,000

Triplex, bought with VA loan, renovated to studs and back on two units for the experience. First time really ever doing construction. Learned a lot and was well worth it! Refied out of the VA loan for 70%, Property appraised for $250,000.

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

Needed a place to live and wanted to get into Real Estate investing.

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

Redfin, placed offer site unseen because I was out of state at the time for work. Did an inspection, and when I got back did another for myself. I knew nothing when I did though. The House Inspector's report was long but found out they should be.

How did you finance this deal?

VA loan

How did you add value to the deal?

I overdid the renovation but I did make it super nice. Plus the market was a good place, a lot of increase from that. It was 3 years for me to renovate 2 of the 3 units by myself.

What was the outcome?

Value increased by $85,000 after spending $80,000 when I should have spent no more than $10,000 but the knowledge is invaluable and would do it again just for that. Gross Rents are $4,325, profit is about $1,250 a month. But more importantly, I learned a lot about houses and myself, I came out a different person.

Lessons learned? Challenges?

Don't renovate two units at once, that was hard. I started the one I was living in March of 2017. Then had an eviction of tenants in Feb of 2018. Started renovating that unit in March of 2018. Finished the first one in Sep 2018. Don't over renovate (unless it is for experience, but it is costly in time and money.) The whole thing was a challenge since I would be doing 16 hour days between work and renovations, then 12-16 on Saturdays and Sundays I would try to take off but would work sometimes.

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

None, I will never use them again and I didn't on the second. Also, Nationstar is a terrible servicer, every year I had trouble with my mortgage, they didn't pay taxes, paid taxes on the wrong house, etc.