FINALLY! A Turnkey property!

[Justin Albrecht]

Investment Info:

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

Purchase price: $289,000
Cash invested: $16,000

My third property and second house hack!

FINALLY! a turnkey property that doesn't add a years' worth of projects to my schedule :) This is an amazing and very unique three-unit home in Kalamazoo's historic neighborhood. All units are spacious and well maintained by the previous owner that had owned the house for over 30 years.

Savvy with negotiations and the primary residence conventional loan made it so I only had to bring about $16,000 to the table in order to close.

Already exceeding the 1% rule as is with lower-than-average rents! Moving in myself I'll be living inexpensively for the next year until i can repeat the process.

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

Low maintenance, low money down, above the 1% rule and my second house hack!

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

Good old-fashioned Zillow!

How did you finance this deal?

conventional primary residence loan.
negotiated seller credits
I complain about my W2 job... but in the end it funds all of my deals!

How did you add value to the deal?

rents are under market value from long term tenants. This home already meets the 1% rule as is... but once rents are raised to market value we will be making about $400 cash flow per month

What was the outcome?

A unique, long term investment opportunity that is (hopefully) low maintenance.

Lessons learned? Challenges?

Working with a great Realtor is key. We were super quick to view and make an offer on this home and that was why we closed on this home.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

yes! Logan Laperriere!

I met Logan on Bigger Pockets and he was awesome to work with. Reach out to Logan if you are looking for an investor savvy realtor in the Grand Rapids or Kalamazoo area! Find him on Bigger Pockets!

[Drago Stanimirovic]

Hi Justin,

This is a solid investment, especially as your third property and second house hack. Securing a multi-family home in a historic area with only $16,000 down, exceeding the 1% rule, and having the potential to raise under-market rents is a great strategy. The fact that it's turnkey and low maintenance is a huge bonus, saving time and effort.

Your use of a primary residence loan and seller credits to minimize cash outlay was smart, and moving in yourself will keep living expenses low while increasing future cash flow once rents are adjusted. Overall, this is a strong long-term investment with plenty of upside potential. If you need help with financing as you grow, feel free to reach out!

Best,

Drago