First step in BRRRR and on my FIRE journey

[William P.]

Investment Info:

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

Purchase price: $68,000

I always was interested in house hacking and wanted to get my momentum starting with a duplex I could live in. Been spending the time since I purchased this to renovate up to my standards, getting a single home next to have more space to breath & for the significant other, and then off to continue the momentum with the BRRRR strategy.

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

Growing up my father had a duplex that we lived in and as I gained more insight on the real estate market was my initial inspiration. To get my momentum started I wanted to find a deal that didn't have any major renovations needed due to my limited time available with being in school and my two jobs.

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

I searched through all the general websites for duplex's almost daily, I set up notifications from clearchoiceenterprises.com for my criteria, and also found a really good type A realtor who helped with my search and negotiation. The asking price was 75k and after getting the home inspection I was able to get my initial bid for 68k.

How did you finance this deal?

Conventional loans through my credit union and a nice down payment.

How did you add value to the deal?

Negotiating well for the initial bid, keeping the tenant that was already present, doing as much as the renovation work with myself involved in the labor and price checking materials, and not getting too carried away in the renovating process.

What was the outcome?

I was able to get the house 7k down from asking price, live in one side while learning & completing renovations, and able to have a nice study house to continue with the BRRRR strategy with the next houses.

Lessons learned? Challenges?

Above all, learn learn learn and utilize the support structure you have around you. Stick to the numbers and stay in that frame of mind. On my initially housing search I was getting outside of this which could of lead to some hairy situations.

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

Leslie Pfeiffer for my real estate agent was phenomenal.