1st investment property!

[Kameron Kline]

Investment Info:

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

Purchase price: $180,000
Cash invested: $40,000

1st property: house hacking this fixer upper duplex with 3.5% down. Investment will be fully running Q1 or Q2 '22.

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

The numbers worked on paper. The property was visibly distressed so I felt there was room to negotiate. Rents were also considerably below market rent for the area.

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

MLS. I offered 2% below asking price. I further negotiated after my inspection which resulted in seller's assist at closing.

How did you finance this deal?

FHA loan

How did you add value to the deal?

New roof and siding. Increased rent with existing tenant by 11.5%

What was the outcome?

This is still ongoing but I plan to cash out refinance to get all my cash invested out from the improvements (roof, siding, other minor updates) I made to fund my next deal. The other unit need updating once it is vacant which will allow me to increase rents by another 10 - 15%. ARV target is ~$230k

Lessons learned? Challenges?

Being a real estate investor means being a problem solver. Don't panic when an issue comes up. You may not have the answers right away and that's okay. Spend time on the BP forum. Google it. Talk with family and friends and neighbors about what you are going through. Eventually the answer will reveal itself to you.