Investment Info:
Small multi-family (2-4 units) buy & hold investment in Omaha.
Purchase price: $200,000
Cash invested: $10,000
Purchased a 4-unit brick building that was near where I lived. I noticed it was never fully rented and reached out to the owner about selling. I was able to buy it right, get it rented out and add a 5th unit. It's still in my portfolio because it's a great investment in a great location. The point is you just need to take a chance and ask - see the potential - make it happen!
What made you interested in investing in this type of deal?
I saw the potential that the owner was not harnessing.
How did you find this deal and how did you negotiate it?
It was in my neighborhood. Shop where you know! I took a shot by calling the rental sign on buying it and it worked out.
How did you finance this deal?
10% down, bank financing on a 5/1 ARM. After some work and getting it fully rented at market rates, we refinanced into 15-year fixed rate.
How did you add value to the deal?
We upgraded each unit, added a 5th unit, added WiFi, added coin laundry.
What was the outcome?
It is still in our portfolio. It has been a great rental and continues to grow with us.
Lessons learned? Challenges?
One of the carry-over tenants was not paying rent, so we learned real fats how to deal with eviction process, small claims, changing locks, etc.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
I represent myself - Ryan Basye at Nebraska Realty.
The lender we have on this deal now is Omaha Federal Credit Union (15-year fixed rate for rental property is great).
