Purchased My First Rental Property

[Steven Webster]

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Hamlet, NC.

Purchase price: $80,000
Cash invested: $28,000

This is a beautiful craftsman style duplex with lots of character. Each apartment consists of 1338 sq ft with 3 bedrooms and 1 bathroom. The living room and formal dining rooms are very large, creating a great space for guests or family. The house has original craftsman details throughout the home and fresh, new paint to brighten the rooms. This is the perfect home on Main St with just a short walk from the quaint down town and train station.

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

This house appeared to be vacant so I mailed the owner a letter.

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

Mail Marketing - I sent several personalized letters to homes in this area.

How did you finance this deal?

I purchased the property using a 401k loan ($40k), a hard money loan ($20K), and cash ($20k). Renovations were done using a business loan ($12k). I was later able cash out refinance less than 6 months later ($64K) to payoff the hard money loan and business loan with leftover money to use toward another property.