Small multi-family (2-4 units) buy & hold investment in Tracy.
Purchase price: $525,000
Cash invested: $144,000
14k in Repairs
What made you interested in investing in this type of deal?
Rent market for this city
Future train station being added
How did you find this deal and how did you negotiate it?
Pre listing notification
How did you finance this deal?
30 yr fixed
4.5 no points
How did you add value to the deal?
Curb appeal is critical when vacancies arise
Driveway, landscape, and various neglected interior items.
What was the outcome?
Part of my offer was to have owners send out 60 notification for rent increases. Adding 200 to rents brought COC to 8.5% after year 1 the property will be at 9.5%. Which is my bench mark.
Had an aggressive schedule for repairs starting right after closing. All trades did a great job, Tenants are great people and are in for the long hall. so far so good.
Lessons learned? Challenges?
Always have 2-3 lenders working for you till the last minute. Than pick the one that doesn’t try to play tricks and change pricing / interest etc. at the last minute while your vulnerable.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Janice Jordan (Broker) Rocks
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