Investment Info:

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

Purchase price: $560,000
Cash invested: $560,000

2 New construction duplexes. Each unit is 2 bedrooms, 2 baths, 2 car garage in a location that is centrally located in Oklahoma City. Each unit is approximately 1,000 sq. feet so the total of the 4 units is right around 4,000 sq. feet.

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

Brand new construction so the property will have limited maintenance issues for a while. The price of the property for new construction was reasonable, especially considering the cash flow.

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

Off Market deal--purchased directly from the developer/builder who doesn't list the homes for sale on the MLS

How did you finance this deal?

Paid Cash

What was the outcome?

Signed a contract to purcahse the units in November of 2020 and construction took approximately 14 months. When I signed the contract, I was projecting the esitmated rent at $1,100 to $1,150 per unit and we ended up leasing all 4 units at $1,275 per month wihtin a few weeks of closing.

Lessons learned? Challenges?

Rents generally rise over time so it's important to consider the possible future earnings potential. When I bought it, the returns were looking nice at a $1,100 per month rent estimate but it's nice that when construction was completed the market rent was $1,275 per month so that was an extra bonus of $175 per month per unit (or $700 per month total) over my initial cash flow projections when I signed the contract to buy the properties.