Small multi-family (2-4 units) buy & hold investment in St. Louis.
Purchase price: $145,000
Cash invested: $5,000
Sale price: $175,000
This property is a former 4 family building in St. Louis, MO that was converted to a 3 family. The left side of the building was converted into a 3 bed/2 bath townhouse and the right side remained as 1 bed/1 bath units.
What made you interested in investing in this type of deal?
It was a good opportunity to jump into a multi unit building as a decent price.
How did you find this deal and how did you negotiate it?
My realtor found this deal on MLS. There wasn't much negotiating because the seller was a tired landlord and wanted to move on.
How did you finance this deal?
30 rental loan.
How did you add value to the deal?
I only made a few minor upgrades. When I purchased the property it was fully leased so I just corrected a few issues for the tenants.
What was the outcome?
Held it and cash flowed it for a couple years and eventually sold to raise money for a fix/flip project.
Lessons learned? Challenges?
The biggest lesson I learned was more about my current fix/flip project. I never wanted to sell this building but I had to in order to complete the fix/flip. So, the biggest lesson is to make sure you have plenty of cash on hand when starting a challenging project. There were no major challenges, just typical tenant maintenance.
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