Small multi-family (2-4 units) buy & hold investment in Kihei.
Purchase price: $855,000
Cash invested: $25,000
Single family house with detached ADU (cottage), and 4 total rental units in Kihei a block from the beach. Bought for about 150k below market value, no rehab needed, just a few repairs. Rents are under market, but we'll be keeping them as low as possible to add value to the community. Gross rents to 7k/mo. Market rents are around 8k/no.
What made you interested in investing in this type of deal?
Cash flow and appreciation
How did you find this deal and how did you negotiate it?
Direct mail and we offered to take on the repairs that the seller would’ve paid much more than we will pay to get done.
How did you finance this deal?
How did you add value to the deal?
Working with my engineer to obtain a LOMA from FEMA to get the house removed from the flood zone (which will save us $350/mo in flood insurance, and increase cash flow by 350/mo), Buying at record low interest to increase cash flow, buying off market to save commissions, and getting my crew to handle the repairs.
What was the outcome?
Closed for about 15% below market value - not a textbook BRRR but a good one nonetheless
Lessons learned? Challenges?
Never trust a seller on estimates and deposits with vendors! Seller said plumbing repair estimate was 16k and he paid 9k already, so I agreed to pay the approximately 6k that was still owed after I get work finished. During escrow I got the invoice and the seller put down 6k, total was 19k,
So I’ll have to pay them 13k, instead of the 6k we agreed to.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Marnel Lozano from destination Maui realty. She’s a Realtor and PM that was the sellers PM and she was very helpful and professional.
@Greg Gaudet this is awesome!
@Greg Gaudet Great deal! Curious how long this took: "Working with my engineer to obtain a LOMA from FEMA to get the house removed from the flood zone (which will save us $350/mo in flood insurance, and increase cash flow by 350/mo)"
￼I don’t know yet, we haven’t actually submitted the request yet but it sounds like it could take a while
great property. congrats!
That's awesome, congrats Greg!
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