2nd property investment
Investment Info:
Small multi-family (2-4 units) buy & hold investment in Poughkeepsie.
Purchase price: $190,000
Cash invested: $64,000
2-family rental property
What made you interested in investing in this type of deal?
9.03% cap rate | 26.56% cash on cash ROI | 49.29% Cash Flow
How did you find this deal and how did you negotiate it?
Through our local broker. We actually purchased this property 5k over asking.
How did you finance this deal?
Balloon 6/1 ARM 15/30 @3.000% with 25% down payment
How did you add value to the deal?
We own a construction company that is completing the renovations to give us the returns we mentioned. This is approx. 30% higher than what the previous Owner was receiving.
What was the outcome?
We will easily rent these units at the asking and are looking to refinance when the value is increased to get our returns back. BRRRR
Lessons learned? Challenges?
It's been challenging purchasing and maintaining a property 1.5 hours away from where we live. We are sourcing local attorney's, lenders, and building a local team to help with the buying/ renting process.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Berkshire Hathaway. Very knowledgable in the area.
