BP wants me to share my first property apparently so...

[Patrick Echlin]

Investment Info:

Large multi-family (5+ units) buy & hold investment in Litchfield.

Purchase price: $210,000

5 units in two buildings on the same parcel, plus a 6th that needs about $25k worth of work to make it good, per contractor

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

I found this through my realtor (before I became licensed) and the MLS. List price was $235k, but I thought the numbers looked better (10% cap) at 210.

How did you finance this deal?

Traditional mortgage - 20% down, minus the 10k the bank allowed for repairs.

How did you add value to the deal?

I'm at the tail end of making sure basements aren't flooding, roofs aren't leaking, and everything actually works the way it's supposed to. Once that is done, I'll move on to renovating unit 6, which will be a full gut and redo.

What was the outcome?

TBD

Lessons learned? Challenges?

I haven't learned any hard lessons yet, but I learned a LOT of hard lessons starting a couple of non-real estate businesses.

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

My now-brokerage (Jones Chance & Co. in Ypsilanti, MI) specializes in helping people make wise investment decisions. I joined them to learn more of the nuts and bolts and to help others get on the multifamily path.