Great 1st property and I am excited for more!
Investment Info:
Large multi-family (5+ units) buy & hold investment in Livingston.
Purchase price: $93,000
Cash invested: $19,220
We purchased a home that had been converted into a mult-unit apartment home by the previous owner. It had "good bones" even though it looked a hot mess and after extensive weekend work, we were able to get it rented out by decent people who really enjoyed it. It is netting us no less than $2,000 a month after expenses and we have learned a lot along the way.
What made you interested in investing in this type of deal?
I really liked the multi unit concept even though I had never seen anything like it before (or since) and it made sense on paper although it looked like a bad deal from the visuals.
How did you find this deal and how did you negotiate it?
It was on Zillow at the time and we were looking for a small rental opportunity. We offered cash for the unit as we did not believe we would be able to get a loan based on the uniqueness and visuals.
How did you finance this deal?
We used money we had saved up personally.
How did you add value to the deal?
We did all of the clean up ourselves as well as worked with a handyman to paint, replace sheetrock and repair the septic tank.
What was the outcome?
The units cash flow very well and the property has increased in value over $145,000 at last check.
Lessons learned? Challenges?
We learned about renters and which ones will work and which ones do not. We now have tenants that refer other tenants to the point that we never have any vacancies.