First 3 unit Deal Closed!!
Investment Info:
Small multi-family (2-4 units) buy & hold investment in Albany.
Purchase price: $210,000
3 unit building got 10k under asking. Needs some freshing up but need two of the tenants to move first before it can be done. Once they are out it's going to be a great value add increasing our ROI from 8% to 15%.
What made you interested in investing in this type of deal?
Rents below market value and opportunity to value add to the building.
How did you find this deal and how did you negotiate it?
MLS. Negotiated price down because units need some cosmetic work.
How did you finance this deal?
Traditional financing 25% down
How did you add value to the deal?
Going to be able to raise rents 200 per unit once rehab is completed
Lessons learned? Challenges?
The lesson learned was, get all agreements in writing. The seller's agent agreed for the seller to add a new circuit to one of the units that had problems overloading one of the breakers and it did not get done before closing. We came to another agreement at closing but now I am paying half the cost of the work being done. This time we got it in writing and signed.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Jamie Brayton is my real estate agent and I would recommend anyone in the capital region of NY looking to buy investment properties to contact her. Answers questions very quickly and always on top of everything that needs to be done.