All Forum Posts by: Kyle Chadwick

Hi @Tracy Opoku!! I'm from upstate NY and not too much further ahead than you. I have 2 MF properties with a total of 4 units and I just "flipped" a house that we decided to keep and live in. It's awesome to find someone else who's also spending a lot of time investing yourself into the REI world with books and podcasts!! Here's a few thoughts to your points above: 1. I "house hacked" my first property and found that it's a great way to get started. By purchasing it as owner-occupied you can get into it with very little down and a good terms. Keep in mind that 1-4 units is considered residential so you can get into a 4 unit owner-occupied just as easy as a SFH. 2. I haven't exactly done this quite yet but I sort of did. I purchased the property as owner-occupied, then I purchased a second property and moved out and did a cash out refi under an LLC I set up. The credit union that I worked with on this allowed up to 80 LTV on the appraised value. 3. Sorry, no insights into the CT market. 4. Something that I didn't realize on my first deal that I was able to use on my second deal is seller concessions. If you don't know this is where the seller agrees to give you a credit (up to 6% in NY) towards closing. This definitely helped get me into the property with much less out of pocket.

Hope this helps!! 

Kyle
 

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Cohoes.

Purchase price: $64,000
Cash invested: $8,000

This was my first real estate investment purchase. I purchased this property as an owner occupied 2 family living in 1 unit while renting out the other unit. I have updated the property over the years and have never had a problem with finding renters. The gross rents total $1,575 and produce a NOI of $700 per month.

What made you interested in investing in this type of deal?

After not finding a job with my degree in Biology I picked up the book "Rich Dad Poor Dad" and realized that I wanted to shift my focus into real estate investing. This seemed like a prefect way to start investing in real estate with little money and risk. I was able to start collecting rent which paid for the mortgage so I could live rent free. Later, when I moved out and rented the other unit I was able to collect a monthly cash flow!!

How did you find this deal and how did you negotiate it?

I found this deal through our realtor and since it was on the market for a while I was able to get it for a great price.

How did you finance this deal?

I financed with FHA as a first time homeowner. It cost about $8,000 with down payment and closing costs.

What was the outcome?

This was a great start to real estate investing and I still have this property in my portfolio. Not only have I collected cash flow every month but the property has appreciated significantly and I was able to refinance this property under my LLC and pull out the equity to use for future deals.