Small multi-family (2-4 units) buy & hold investment in Newark.
Purchase price: $232,000
Cash invested: $50,000
Closed on the property on January 15th and completed most of the renovations by April 15th, 2019. Currently, the home is occupied by Section 8 tenants.
What made you interested in investing in this type of deal?
This was my first deal with my partner that is also interested in small single family type investments.
How did you find this deal and how did you negotiate it?
We searched for this deal for a few months before putting in an offer. We had found this deal as we were driving for dollars throughout the city of Newark.
How did you finance this deal?
How did you add value to the deal?
Renovating the second floor (Unit #2), front inside and outside entrance, rear foyer, backyard, basement and general lipstick work on the first floor (Unit #1)
What was the outcome?
The overall final product came out great. Me and my partner put in roughly, a combined 420 hours during a 3-month process. We completed some of the light work including, painting, cleaning, spackling, electrical, flooring and light framing. We oversaw the contractors that were performing the major work including electrical, kitchen renovation, heating system upgrades, painting and concrete works.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
That's awesome! How much do you cash flow from this a month?
My partner and I are currently in the process of cash-out refinancing with our selected bank. We anticipate having around 700 to 1000 per month of cash flow. Our goal within the next 1-2 years is to add a small bath and kitchenette to the 3rd floor and finishing the basement. This will increase our cash flow.
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