Investment Info:
Small multi-family (2-4 units) buy & hold investment.
Purchase price: $142,000
Cash invested: $30
This was a Duplex I was living in bought it and the one next door. I was house hacking before I even knew what it was. Did alot of upgrades on the property probably more than needed but it's ok, it's the 1st baby property.
What made you interested in investing in this type of deal?
I was a renter in the unit figured I'd just buy it.
How did you find this deal and how did you negotiate it?
I found the deal from a friend who was a roofer and was working on the place. I met this friend at an evening community college exercise class.
How did you finance this deal?
I did 3-5% down FHA on 30 year fixed traditional loan.
How did you add value to the deal?
I did alot of upgrades to both inside and outside of property,
What was the outcome?
Outcome has been amazing. I been living in the one unit for 6 years, I also bought the duplex right next to it. So the three rents been paying for the mortage of both, I pitch in like maybe $300 a month to break even on mortgage, and that is after all the expenses, I have property management company. I got lucky with low 2017 interest rates, and in 2020 I dropped a point on each with refinance.
Lessons learned? Challenges?
I learned I got very lucky finding this off market deal, on the duplexes I was living in. Also I learned Real Estate is the key. And I overspent on upgrades but hey, never waste to spend on real estate.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Yes I kept the original property management company, used Prime Lending local lender in town.
