Locust street duplex, Milw. WI

[Anthony Medora]

Investment Info:

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

Purchase price: $195,000
Cash invested: $30,000

My first purchase was made using a conventional loan. The seller needed to close quickly because he was scheduled to buy something else and needed the funds from this sale to continue with his next purchase. I think one of the biggest reasons I was able to close on this deal was because I helped solve the previous owners problem (needing the funds quickly). His previous (perspective) buyer's financing fell through at the last minute, and I was able to close the deal within a tight schedule.

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

The property is in a nice, stable part of Milwaukee, and the numbers work quite well for me.

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

My realtor found this deal on the MLS.

How did you finance this deal?

I financed this deal with a conventional loan.

How did you add value to the deal?

I added value to the deal by solving the sellers problem. I added value to the property through sweat equity.

What was the outcome?

I have a stable, reliable, cash-flowing property that requires very little maintenance.

Lessons learned? Challenges?

I learned a lot about the closing process, since this was my first purchase. But I think the deeper lesson that I learned through this whole experience is that if you can help solve a problem, people are more willing to work with you.

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

My agent, Jim. I honestly don't know if I would have been able to pull the trigger on my own. I don't have any experience or insight into the real estate world, and $200k is a lot of money to me. I'm not sure I could have pushed through the fear of such a huge financial decision if I wasn't working with a realtor that I knew and trusted. After learning a lot from Jim, I believe I am in a much better position now to be able to make informed decisions regarding real estate.