Small multi-family (2-4 units) buy & hold investment in Red Hook.
Purchase price: $295,000
Cash invested: $63,500
This house was a poorly maintained multifamily in the village of a thriving small town. This was also my first deal which I planned to repair, add an additional room to one of the units and house hack.
What made you interested in investing in this type of deal?
The ability to not only live for free, but to gain a monthly cashflow drew me to this type of deal.
How did you find this deal and how did you negotiate it?
My realtor brought this deal to me off the MLS. Originally the house was priced at 330k and after negotiations, was purchased for 295k
How did you finance this deal?
I leveraged my first time home buyers ability and was able to put down 11% to avoid PMI. All the repairs and closing costs was funded out of pocket.
How did you add value to the deal?
There was a ton of value added to this property. I removed dangerous trees, resurfaced the driveway and expanded the drive for more parking. The unit on the first floor of the house was completely renovated, going from having no insulation in the walls, single pane windows and electric heat, to having all new floors, walls, insulation, windows, new bathroom, new kitchen, everything was painted, new plumbing and electrical, as well as a new forced hot air heating/air conditioning system.
What was the outcome?
I was able to increase rents, and i am waiting on a reappraisal.
Sounds like you did a great job. Hopefully the reappraisal hits your mark.
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