First Purchase in the Books!

[Matt Charette]

Investment Info:

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

Purchase price: $87,000
Cash invested: $24,000

Made my first investment in a duplex in Mishawaka, IN. This is an out of state investment being from Massachusetts.

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

Met my minimum cash flow of $200/mo and was close to an 8% cap rate even before the price decreased from $93.5k to $87k.

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

Found the property on Roofstock listed for $97,000, had an offer accepted at $93.5k but it only appraised at $87k. Negotiated the price down to the appraised value.

How did you finance this deal?

25% down payment with a 30yr loan at 3.875% interest. Closing costs were ~$3000.

What was the outcome?

Cash flow is now expected at $300/mo!

Lessons learned? Challenges?

Spent 3 years waiting, analyzing deals and was priced out of my local market in Providence and Worcester. With all of the podcasts I've listened to over the years I opened up to the idea of out of state properties with management. It was hard to let go, but I feel like I've made great local connections putting my mind at ease with running my business this way!