First Property - 4 unit full gut $2400 cashflow MONSTER!

[Matthew Amabile]

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Phillipsburg.

Purchase price: $264,000
Cash invested: $30,000

https://www.lehighvalleylive.com/warren-county/2021/11/how-a-24-year-old-went-from-1-pburg-home-makeover-to-a-thriving-apartment-business.html

What made you interested in investing in this type of deal?

to get my first property, bigger pockets, low down payment with FHA

How did you find this deal and how did you negotiate it?

foreclosure MLS, asking was $125k, i offered 155k and was declined. then the bank came back to me and accepted and I reduced the purchase price $15k.

How did you finance this deal?

FHA 203K

How did you add value to the deal?

full gut $120k rehab.

What was the outcome?

I live for free and cashflow around $1300 monthly. Once I move out it will cashflow $2400

Lessons learned? Challenges?

find good contractors. My rehab took 16 months. Luckily covid forebearance saved me from making payments. Stay on your contractors and manage your renovation projects. Set expectations and get the town involved early.