First House Purchase in Plainfield, NJ

[Joseph Matarazzo]

Investment Info:

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

Purchase price: $430,000
Cash invested: $40,000

Owner occupied 3 unit building. Consists of three units, each one is a 3 bedroom 1 bathroom of about 1100 SF. Currently living in one unit, renting out two plus the detached garage. This covers 95% my costs while not yet making me extra money, but I live for almost free! When I rent out the newly updated unit for a higher rent, plus when I refinance then it will have a much higher cash flow which will have me living 100% for free and bringing in another 300-400 a month.

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

Covers my cost of living, good first investment property.

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

Researched the area, worked with a realtor.

How did you finance this deal?

Conventional loan.

How did you add value to the deal?

I moved into the worst unit and renovated it slowly as I lived there the first year. Recently I had my tenant move out and I am just now finishing updating/ flipping the unit.

I am also planning on refinancing to a lower interest rate to save money / increase cash flow.