Our first 4Plex using the VA loan.
Investment Info:
Small multi-family (2-4 units) buy & hold investment in Tacoma.
Purchase price: $540,000
Cash invested: $10,000
Class C- 4Plex. Really a Triplex with a 2 bed cottage on the same parcel. Gross rent is $4200.00 a month and total expenses including PM is around $3,450.00 a month.
What made you interested in investing in this type of deal?
Rich Dad, Poor Dad and the research and desire to begin investing in real estate.
How did you find this deal and how did you negotiate it?
Our real estate broker at the time showed it to us.
How did you finance this deal?
VA financing, zero down but with $10k in earnest money.
How did you add value to the deal?
Renovated the units with tenant turnover, only the 2 bed cottage has not been renovated since that tenant has stayed.
What was the outcome?
Currently cash flows $750.00 a month.
Lessons learned? Challenges?
Have reserves so you don't have to pay for repairs and renovations out of your own pocket. Since this was our first property, we have learned a lot about the process of just buying a small MF property and we are still learning today.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Blackwell Real Estate in Tacoma helped us get into our first 4Plex. They specialize in buy and hold strategy for investors who want to focus in MF real estate.