Small multi-family (2-4 units) buy & hold investment in Decatur.
Purchase price: $227,000
Cash invested: $60,000
A turnkey quad in Decatur with each unit being 2/2 and rented at 575. This quad is in a good area in point mallard and there was not much deferred maintenance. Based on my research I am confident that I can increase the rents to 650 without much rehab. Its not a home run but I am confident that it will give a decent cash flow.
What made you interested in investing in this type of deal?
I had been hearing about Decatur for quite some time from my PM and my realtor and since prices in Huntsville are really not making sense I decided to look in Decatur for diversification. Plus I was able to get a good rate of 3.25 30 year fixed which also was tempting.
How did you find this deal and how did you negotiate it?
It was listed on MLS
How did you finance this deal?
Conventional financing I put 25% down and financed the rest at 3.25 30 years fixed.
How did you add value to the deal?
This is a turnkey quad with not much needed in terms of rehab. The lease on one unit completed recently and I just did a basic touch up on that unit and have listed it for 700$ based on input from my PM. Hoping to get that rented soon.
What was the outcome?
I have purchased this in August and it has been cash-flowing decently from day 1. My plan is to add some value like improving landscape and curb appeal and gradually increasing the rents in all units to atleast 650 in the coming months.
Lessons learned? Challenges?
I think Decatur has a good potential and also the numbers make little more sense than Huntsville. Of course I am not banking on appreciation on this quad but I think there is enough rental demand to steadily increase the rents.
@Gorden Lopes Great Find. Great Buy. Good job Gorden.
Hey @Matthew McDermott !
I forgot that you are on BP now! :) Thanks for managing this so well! Hope unit 4 rents out quickly!
Awesome Awesome, congrats on landing the deal!
Well done Gordon! Textbook purchase! Keep us posted on your rent raising efforts!
@Shawn Costley got it rented for 700!
Excellent work! Justin time for the holidays!
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