My First 4plex in Fairbanks Alaska

[Nic Williams]

Investment Info:

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

Purchase price: $400,000
Cash invested: $100,000
Sale price: $400,000

4plex in the heart of Fairbanks in a desirable area between the commercial district and University side of town.

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

Perfect location and start to my portfolio at the time.

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

MLS find, multiple offers, bought at purchase price

How did you finance this deal?

Conventional investment loan at 3.5%

How did you add value to the deal?

exchanged commission for a seller's credit to cover all expenses of the sale and repairs minus the down payment.

What was the outcome?

My first 4plex with a cap rate above 10%

Lessons learned? Challenges?

Smooth transaction, no major challenges out of the norm.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I am the real estate agent!

[Bonnie Griffin Kaake]

@Nic Williams  Good job on getting this property in your portfolio. Be sure to get an engineering-based cost segregation study done on it. Depending on your tax rate, you likely have a minimum of $24K to $32K available in cash flow from taxes you will not have to pay.