Investment Info:
Small multi-family (2-4 units) buy & hold investment in St. Louis.
Purchase price: $122,000
Cash invested: $3,500
Purchased a small duplex with an FHA loan where I live in one unit and renting the other out. This was our first investment property we bought and has turned out really well! Biggest thing I learned is that a good tenant makes investing fun!
What made you interested in investing in this type of deal?
Looking to buy my first house and wanted someone else to pay most of the mortgage.
How did you find this deal and how did you negotiate it?
Found on the MLS over 60 days on market. Negotiated to purchase at list price but seller to give credit at closing. Allowing me to only pay $3500 for the home.
How did you finance this deal?
FHA financing
How did you add value to the deal?
minor cosmetic updates: landscaping, painting, cabinet hardware, update light fixtures.
What was the outcome?
Have had a few tenant turn overs since they're just 1 bed units. But, has made decent money. And, gained so many lessons that we applied to our second investment property!
Lessons learned? Challenges?
Always expect at least $2k in repairs once you buy the home for things you don't know will go wrong.
It's better to wait a few weeks to find the right tenant instead of accepting the first one that seems decent.
don't underestimate the neighborhood! And, go back to the property at different parts of the day to see if anything changes.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
My mother in law, Krista Hartmann, who I'm now a part of her real estate team!
