Single family rental to Quad

1 Reply

Investment Info:

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

Purchase price: $168,500
Cash invested: $55,000

Sold my San Antonio SFR and did a 1031 into this quad. I differed the taxes from the sale and quadrupled my cash flow in a hot and growing market.

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

Passive income

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

MLS. Made it contingent on inspection. Signed an addendum to lower offer. Locked it in.

How did you finance this deal?

Conventional loan.

How did you add value to the deal?

I haven't added value to this deal yet. Plan on fixing up units as tenants turnover

What was the outcome?

NA

Lessons learned? Challenges?

I definitely realize that I could have bought something a little larger with the amount of capital I transferred from the sale of my SFH. However, I'm happy I did the deal. It's more about the learning/experience for me at this point. I do feel I've grown a lot over the last year. I now have a 24 unit under contract and working on a new construction (it was suppose to be a flip).

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

No.

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