First rental: 4-plex

[Morgan Ross]

Investment Info:

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

Purchase price: $365,000
Sale price: $365,000

4-plex
x3- 2bed/1 bath
x1- 1 bed/1bath

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

Passive income

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

Realtor.com. We offered 5k under asking. Owner came back asking for 5k over asking due to multiple higher offers but wanted to give us the chance to come up because he said he like us 😊. We went for it because even at 5k over asking, we are still cash flowing 2k positive a month.

How did you finance this deal?

Conventional loan with 25% down payment. Used the profit from out live-in flip for the down payment

How did you add value to the deal?

So far, we haven’t. 2 leases are up soon and we do not plan on resigning for various reasons so we plan to update both units and increase rent.

Lessons learned? Challenges?

Passive income is amazing. Receiving our first checks for “doing nothing” was such a crazy experience that just makes us even more eager to keep pushing and buying more properties.

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

Real Estate Agent - Joe Dino: Keller Williams, Shore Property Group. Joe has dabbled in REI himself which made it so easy to work with him because he had full comprehension of our goals. He has good insight and advice for handling more difficult tenants