My First Investment Property Changed My Life

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Investment Info:

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

Purchase price: $177,500

This house is my very first property. It contains 2 units - the front unit is the original part of the house and the second unit is an en suite which was added after the original construction. Both units are 2 bed, 1 bath, however the front unit is larger and updated (new kitchen).I currently manage this property myself. I have retained long term tenants (young professionals) and generate ~$600/month cash flow. I pay for all utilities due to the inability/cost of separating out utilities

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

By trade I am a mining engineer and learned how cyclical mining is. When its good its great, but when its bad, its bad. I made the decision that after I graduated and began working I would invest in real estate to supplement my income during hard times in the mining industry.

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

I found this deal through the MLS. I spent hours looking over the MLS to find the suitable property for me (ie: manageable size for a single female and has two units) The moment I walked in the house I knew it was a perfect fit (which I would later learn is how I would buy all my following properties: Lots of behind the scenes research so that when I actually visited a property I would be able to make a decision right away if it was a property worth pursuing)

How did you finance this deal?

I financed this deal by saving up money while working my co-op (internships) jobs in mining.

How did you add value to the deal?

The house is two units, however when I bought it, the unit in the back was not fully finished. It had electrical hookups for a stove, but no actual kitchen. I created a deadline to finish the kitchen by posting an add on kijiji (similar to craigslist) to rent the apartment and found a tenant. The move in date was then my project completion date. This helped push me to find appliances, build counters, and re-paint the unit in a timely manner.

What was the outcome?

I have since moved out of the house and it cashflows $600 a month. I plan on holding this property for the foreseeable future to continue cash flow generation.

Lessons learned? Challenges?

As this was my first experience as a landlord I learned the in's and out's of being a landlord on the fly. Since day 1 I have been careful to screen tenants well, which has led to a very positive landlord experience.