Investment Info:
Back in 2016. Small multi-family (2-4 units) buy & hold investment in Bronx.
Purchase price: $560,000
Cash invested: $50,000
3 family house in the Bronx, NY. My first investment property. I lived in one unit and rented out the other 2. Now I rent out all 3 units.
What made you interested in investing in this type of deal?
I always knew I would start off my investing career by purchasing a multi-family house with favorable financing.
How did you find this deal and how did you negotiate it?
It was a pocket listing. I searched high and low using multiple methods. In the end, a realtor that I kept in touch with told me about this deal. They were asking $590k, and I negotiated to $560k plus a $25k seller assist for my closing costs which was bundled into the mortgage. My offer was accompanied by a personal letter and picture. My wife and I were also able to meet the seller and build rapport.
How did you finance this deal?
FHA loan with 10% down, through a mortgage broker.
How did you add value to the deal?
Lots of sweat equity. Countless nights and weekends of working on it.
What was the outcome?
Still own it today. $6k in monthly revenue. $1,500 in monthly net income, including reserves, vacancy, etc. Current value is north of $900k.
Lessons learned? Challenges?
Old houses are tough. Lots of surprises, lots of setbacks. But it served as a key component to my real estate career. It was a launchpad.
