Small multi-family (2-4 units) buy & hold investment in Bronx.
Purchase price: $550,000
Cash invested: $70,000
Sale price: $835,000
House hacked a 3-Family house in the South Bronx. Lived off the income when I transitioned to Massachusetts.
What made you interested in investing in this type of deal?
Rent appreciation. I considered the Bronx to be the last frontier in NYC. The South Bronx in particular had the cheapest rent of all the areas immediately outside Manhattan AND was highly commutable. As rents increased everywhere else it only made sense that New Yorkers would consider it. Lots of development and revitalization going on at the time and a very attractive cap rate (9%+).
How did you find this deal and how did you negotiate it?
Craigslist, paid asking price.
How did you finance this deal?
How did you add value to the deal?
Renovations to attract market rent. New kitchens and baths.
What was the outcome?
Rented at slightly below market rate, lived in one unit and rented the others. Lived free for a year. Moved out and rented my unit. Property cashflowed very nicely for 4 more years.
Lessons learned? Challenges?
Don't rent to family.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Very satisfied with my loan officer, my insurance broker and the real estate broker that helped me sell it.
Great deal! I recently purchased a two family in the South Bronx and am looking to do the same. What neighborhood were you in? What was your approach to finding tenants?
Following....I have a 3 family I bought in 2015, house hacked for 4 years, moved out less than a year ago and am highly considering selling this year.... @Elvis T Santana your numbers definitely are tempting me! Also interested in the neighborhood your property is in and your selling agents info (could you pm me his/her info?)
@Chad W. I didn't know much back then and was learning as I went. I found my tenants through a Craigslist ad and asked for documents, proof of employment etc. While I ended up with great tenants, I would be way more careful knowing what I know now. I know a property manager that can place good tenants for a fee. I can also vet them myself with online services like cozy.co
@Chad W. thanks! I was in the South Bronx, a few blocks from Yankee Stadium
@Nicole (Dunlap) Pendergrass By YankeeStadium (Highbridge). Sending you a PM
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