Northern NJ Buy & Hold
Investment Info:
Small multi-family (2-4 units) buy & hold investment in Hawthorne.
Purchase price: $355,000
Cash invested: $15,000
Unit 1: 2BD / 1BTH 1000SQFT.
Unit 2: 2BD / 1BTH 1000SQFT.
What made you interested in investing in this type of deal?
The rents had a lot of upside and the units needed updating so overall it's a great value-add. I bought at a great price for the area.
How did you find this deal and how did you negotiate it?
MLS. It was originally listed at $399k and on the market for 150+ days so I put in an offer at $350k and settled at $355k.
How did you finance this deal?
30 Yr. FHA then refinanced a few years later to drop the PMI.
How did you add value to the deal?
I brought rents to market rate and I upgraded the units to match the comparables in the area.
Lessons learned? Challenges?
I was very emotional on convincing myself to finally go through on it. The numbers made sense but the uncertainty scared me. Lesson learned is trust your gut and have plan B,C,D always in place.
