My First Buy and Hold

[Mike Terry]

Investment Info:

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

Purchase price: $171,000
Cash invested: $75,000

My first buy and hold rental. I found a pair of duplexes being sold as a package and rolled in some cash from a recent sale to make these a good start on cash flow. Cash on Cash return is right at 10%

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

numbers worked, I liked the market and I had invest a lot of time on the market to be confident this would be a great deal over a 10 year hold period.

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

I found a realtor on Bigger Pockets who was an investor himslef and worked with investors. He was obviously tied into the market. We tried on a portfolio of three duplexes but couldn't come to terms after the inspections. He called me as soon as these came on the market and we made an offer sight unseen.

How did you finance this deal?

Commercial loan with a significant down payment from the sale of a vacation rental this summer. Relator recommended a couple of commercial lenders in his network. I chose a small local community bank. They allowed me to amortize the loan over 30 years, boosting cashflow. Approval and closing were very simple.

How did you add value to the deal?

I have not. the units are 3/3's and they hav toom to push rents( there are not many in the market) . One has not been renovated and needs it. That unit is under market rents. So there is room to improve NOI and cash flow.

What was the outcome?

So far so good

Lessons learned? Challenges?

I am investing at a distance. My first use of property management. I inhertited tenants. so far I am thrilled.

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

The key was a knowledgable and connected realtor.