My First Deal in a Hot Market

[Joshua Eugene]

Investment Info:

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

Purchase price: $284,000
Cash invested: $12,922

Right now I live on one side for $430 a month. Very safe and nice area with mainly homeowners around me. Once I move, this will cash flow around 600, 300 a door.

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

I wanted to stop renting and start out with house hacking.

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

MLS. Had a to bid $3,000 over asking; however, I really wanted a safe area for my family and loved this area. A decent amount of cash flow was here also.

How did you finance this deal?

FHA loan.

How did you add value to the deal?

To me, the extremely low amount of cash made this deal great for me. Just getting my feet wet. I have enough cash reserves for most situation or to do it again in a year. My overall expensive were lowered while becoming a home owner.

What was the outcome?

Going well so far. I have a tenant paying my projected amount so no issues so far.

Lessons learned? Challenges?

Hot market was a major challenge and I was not able to get any equity. I need to find an off market deal.

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

Yes, I found him on here and he had great reviews on redfin. His name is Michael Cinquemano.

[Adan Issa]

@Joshua Eugene Congrats! I remember you were looking a couple months back. It's good to hear that you didn't have much trouble filling the second unit. Also, although you feel that you paid more for new construction, on the flipside your CapEx should be low for the next few years. Good luck with managing the property.