Investment Info:
Small multi-family (2-4 units) buy & hold investment in Apache Junction.
Purchase price: $300,000
Cash invested: $10,500
As of 7/29/19 I am in the inspection process on a 4 plex in Apache Junction, AZ. If all goes well and we will close in the next month. This is my first property and super pumped!!
What made you interested in investing in this type of deal?
I can "House Hack" this property, so putting down 3.5% and will be cash flowing $300 in monthly cashflow. And my annual cash on cash return will be 34%. After the preliminary year which I am required to live in the property and move out, I will cashflow $940 monthly which in turn is a 107% cash on cash return.
I learned about this strategy from Brandon Turners book, "Rental Property Investing." Thank you for teaching me how to get my foot in the door of real-estate!
How did you find this deal and how did you negotiate it?
My mentor is an agent and found it on the MLS. The sellers where at first only accepting conventional or cash and I needed to use FHA so I could get at 3.5% down payment. But my mentor is a killer agent and explained to them that he had experience using FHA before and we where serious buyers. Eventually they accepted our offer.
How did you finance this deal?
Through a broker that my mentor referred my to.
How did you add value to the deal?
By being as professional and as dedicated to getting the deal go through as I could. And a lot of praying.
What was the outcome?
We got the deal accepted.
Lessons learned? Challenges?
To not lose faith and pray if this is the route that God wants me to take.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Absolutely! My agent is Gilbert Merino and he works out of Arizona.
