First Property Investment

[Annie Johnson]

Investment Info:

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

Purchase price: $42,000
Cash invested: $55,000

This was our first intentional real estate investment. The home is located in a quaint part of town near the city center in Lakewood, New York, and was the ugliest and most run-down house on the block. After working with a few local contractors we have done a major overhaul of the property and hope to cash flow $1000/mo after the rehab loan is paid off a year from now.

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

Loved the location and the price gave us the financial flexibility to invest in rehabbing the properrty.

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

Through our agent. He helped us so much with his knowledge of the local market and helped us negotiate.

How did you finance this deal?

Conventional mortgage.

How did you add value to the deal?

Sweat equity and quality contractors kept us on budget.

What was the outcome?

Higher-end rental in a great community. Easy to rent and cashflow nicely.

Lessons learned? Challenges?

Quality rentals in quality areas bring quality renters.

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

Rick McMahon was our agent and did a great job. John Boisvert was our contractor and was great to work with.