Moses Lake fourplex (1 of 3)
Investment Info:
Small multi-family (2-4 units) buy & hold investment.
Purchase price: $175,000
Two-story fourplex with parking, shared laundry and outdoor space. Each unit has its own enclosed patio; layout is bedroom upstairs / kitchen, living room / restroom downstairs. Each unit has a sliding glass door that opens out onto its enclosed patio.
What made you interested in investing in this type of deal?
Leverage!
How did you find this deal and how did you negotiate it?
MLS; completed my own valuation and provided it to the selling agent along with my offer (unit was listed @ $255k)
How did you finance this deal?
conforming 30 year note (bank financing)
How did you add value to the deal?
Cured deferred maintenance (overgrown landscaping, peeling paint, tilted mailboxes), cosmetic work including interior and exterior paint, rebuild of patio fencing, striping of parking lot. Also hired a local electrician to install separate electrical boxes and split the electrical measurement so that tenants would cover what they were using (previously wasn't split out / owners were simply covering electricity for tenants).
What was the outcome?
Great! Successfully executed the BRRR!
Lessons learned? Challenges?
Small markets are inefficient - don't be afraid to make an offer at a price that you can support with data. Also had to readjust my expectations re response times, scheduling of work etc as smaller towns operate more on relationships than they do on timelines.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Yes - Moses Lake Realty Group has been phenomenal and specifically Jennifer Kron who represented as buyers agent as well as serving as property manager for our entire portfolio in Moses Lake (the other two fourplexes in this same complex plus two SFHs in other parts of town). Would recommend MLRG to investors looking at Moses Lake!
