Small multi-family (2-4 units) buy & hold investment in Baltimore.
Purchase price: $150,000
3 unit residential, fully occupied.
What made you interested in investing in this type of deal?
FHA, 3.5% and grants made it possible to walk away at closing with virtually $0 into this deal.
How did you find this deal and how did you negotiate it?
Surprisingly enough found off the MLS. Listed for $200k on market for >90days. After inspection ended up negotiating repair and delays maintenance.
How did you finance this deal?
How did you add value to the deal?
We invested about $7,000 to add a front door to the building. Besides this just a new coat of paint in one of the units.
What was the outcome?
At acquisition all 3 units were leased to an assisted living facility. After having to file for eviction numerious times, we were able to get the owner to agree to down scale from operation three units to only occupying one unit. This allowed us to rent out the other units and reduce our risk, due to non payment of rent.
Lessons learned? Challenges?
Inherited tenants can be a pain; however, if possible negotiate terms strategically and stay firm in implementing management protocols in order to create a win-win. *Although we latter learned this will not always be the case. 😁
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Yes, agents, lenders, home inspectors, lead inspectors, electricians, ect.
Congratulations! You mentioned that all units were leased to an assisted living facility. You did not want to keep the tenant?
Congrats! Looks like a great deal. Keep pushing
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