My first investment property at 16!

[Ava Yuergens]

Investment Info:

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

Purchase price: $175,000
Cash invested: $42,041

This is my first investment property I will admit its not a home run but definitely a solid base hit. I got this deal cold calling (therefore off-market). To finance this deal I used a co-signed loan, since I am 16 I am not allowed to get my own. I have a property management company hired and its still has pure cashflow of $260 a month. I can't wait to get more deals!

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

I have a goal of getting a minimum of 30 units by 18. I knew I needed to get at least a base hit of a deal so I could get into the game, therefore I was on the hunt for small multifamily and while me and my partner Ben were cold calling the owner was ready to let go of his duplex! The rest is history.

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

Me and my partner Ben were cold calling and the owner was ready to sell his portfolio due to wanting to focus on his kids. He was set on $175000. My agent did most of the negotiating, and we were able to get the agents commission off the purchase price.

How did you finance this deal?

I used a co-signed loan me and my partner Ben brought the deal, knowledge, and hustle! My dad brought the loan.

How did you add value to the deal?

Both units were renovated a couple years prior, and when we got an inspection only $500 dollars worth of repairs were needed! Therefore not much value added.

What was the outcome?

Understanding the step by step process od investing, and getting experience for doing a deal. KNOWLEDGE!

Lessons learned? Challenges?

Finding property management company, how much paperwork is required, finding a deal, and how much waterproof paint burns your eyes.

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

I worked with attorney Taylor Rens (awesome guy), and agent Colin O'Neil bright young agent on the Jim Gracie team at Reality Executives.