Investment Info:
Small multi-family (2-4 units) buy & hold investment.
Purchase price: $86,000
This home has been in my family for 25 years. There was a fire. The home was not insured for replacement cost, but we managed to have it rebuilt with the necessary upgrades. Like plumbing and heating. It is currently on the market and we are working with a qualified intermediary for a 1031 Exchange and looking for financing for two to three new properties to buy and hold for the children and their children and beyond.
What made you interested in investing in this type of deal?
At that time my husband new we needed a home so we bought a multifamily to help us with paying the mortgage. It was a foreclosure and the mortgage was cheaper than renting.
How did you find this deal and how did you negotiate it?
Worked with a realtor.
How did you finance this deal?
First Time home buyer program and received a grant for the down payment.
How did you add value to the deal?
The home needed cleaning before the sale. It was a foreclosure so lots of cleaning had to be done. So my family and I had to clean out the basement and garage before closing. Cat hair was everywhere. Even in the refrigerator, dishwasher and stove.
Lessons learned? Challenges?
Don't be afraid to start small. We had no idea what we were doing. Just learned that what my husband and I did was a buy and hold multifamily. Had no idea for 25 years.
