Updated about 5 years ago on . Most recent reply
First Investment Property
Investment Info:
Small multi-family (2-4 units) buy & hold investment in Phillipsburg.
Purchase price: $264,000
Cash invested: $30,000
I closed in May of 2019 on this 4 unit property through a 203k loan. My overall loan was 264k with 110k of renovations built into the loan. I am coming to the close of my project now and will be finished with renovations in around 1 month. The beginning was a mess with contractors, but I got my way through. This is what my preliminary numbers are looking like.
Mortgage, Taxes, and insurance: $2450 monthly (I aim to refinance after the project is done)
Total rents expected: $4400-4800
What made you interested in investing in this type of deal?
Being able to acquire the maximum number of units through the FHA low down payment loan
How did you find this deal and how did you negotiate it?
My agent brought it to me - it was a foreclosure. It was on the market for $125k and I offered $150,500 after seeing 15+ investors at the initial showing.
How did you finance this deal?
FHA 203k with 110k in renovations
How did you add value to the deal?
Full gut renovation
Lessons learned? Challenges?
FHA 203k process. Finding GOOD contractors. Closing on a loan.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
contractor - ward property maintenance. They are quick and professional and well priced