Investment Info:
Small multi-family (2-4 units) commercial investment investment.
Purchase price: $289,000
Cash invested: $25,000
4 2 bedroom units bringing in $800 for each unit. I am currently living in one of the units
What made you interested in investing in this type of deal?
The house hacking benefit. Living in one of the units allowed me to put down 7% instead of 20%. And i chose a 4 plex because it seemed like the smartest play. the 3 units that I am renting out pay for the mortgage. I am just left with heat water garbage and all the incedentals
How did you find this deal and how did you negotiate it?
It took constant looking at properties on the MLS and a lot of offers turned down on various properties. It took a couple months of negotiations and inspections to get this property. I got the owners to agree to pay for a new water heater for the building (about $4000), and $10,000 of seller paid closing costs.
How did you finance this deal?
Through a traditional lender
Lessons learned? Challenges?
Make sure to pay attention to the details and understand the contract. The sellers got a couple things over on me that i just wasn't paying attention to. Part of the game. Part of the learning curve. Make sure you know what you're getting into. Being a landlord is a bit challenging, but i think if it isn't hard, you aren't doing enough. Push your boundaries.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
I used Adam Lockwood. He is an investor himself and he knows what he's doing.
