Investment Info:
Small multi-family (2-4 units) buy & hold investment in Las Vegas.
Purchase price: $369,000
Cash invested: $100,000
Adress : LAS VEGAS , NV (north west)
Year built : 1984
Lot Size: 6,969 sqft
Square footage actual : 3,892 sqft
Lay out: 8 bed 8 bath
Arv: 380,000
Rehab cost: seller agreed to fix all repairs. very minor, maybe $1200 at most
What made you interested in investing in this type of deal?
potential cash flow, passive income
How did you find this deal and how did you negotiate it?
Hired a realtor who found the deal off the mls. property was on the market for 3 weeks before it went contingent. Previous buyer offer fell through due to issue with his lender. The very same day property went back on market, I made offer and for basically 10k under asking price. Got countered with list price. Seller paid for all repairs, and was patient enough to let my funds season for 2 months after my offer was made so that i could close. previous owner is now also one of my current tenants
How did you finance this deal?
25% down non owner occupied, 30 year fix, 6% ( yea i know pretty high, hopefully i can refinance this time next year for better rate) . This is my first property ever, my credit was about 640 when I first was shopping for rates. I work a 40 hour/week in the medical field, and have a couple side hustles for extra cash. I was able to pay off all my debit. and raised my credit score to around 714 in about 3-4 months. after all the back in forth I was approved for a loan amount of 277k
How did you add value to the deal?
I hired a property manager, the previous owner managed the building his self and it showed. So now there is more of a professional vibe. Im also in the middle of doing minor landscaping updates, as well as new storage unit locks and new touch up paint to the exterior
What was the outcome?
i was able to close 2 months after my offer was accepted, previous owner fixed all repairs, hired a property manager to look after my investment, and previous owner is now one of my current tenants
Lessons learned? Challenges?
always get pre approved before you make offer, this will save you a lot of time and headache, shop around for the best rate ( i unfortunately did not do this rookie mistake) you can get your credit pulled up to 10 times and it will count as 1 inquiry, as long as its all within 30 days. If you are looking to invest in a investment property ( non owner occupied) be ready to drop at least 20-25% of purchase price. No gift funds are allowed, allow 2 months for funds to season for loan approval
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
its sad to say but i wouldn't recommend anybody i worked with, my broker seemed inexperienced ( reason why i had to close 2 months after my offer was made, my realtor seemed ok, because i was inexperienced and didn't know any better, But looking back he didn't really do much for me, could have at least negotiated a home warranty, or lower emd deposit. majority of this deal went in the sellers favor. I legit could have contacted the listing agent my self and saved money. God is good though
