Updated over 3 years ago on . Most recent reply
First small multi-family
Investment Info:
Small multi-family (2-4 units) buy & hold investment.
Purchase price: $201,000
Cash invested: $40,200
Wood frame building built in 1930. Two units on the 2nd floor. One unit on the 1st floor.
What made you interested in investing in this type of deal?
I have three single family houses and wanted to move into the multi-family space.
How did you find this deal and how did you negotiate it?
MLS. Listed for more, but I knew it had been on the market for a while so I offered less and offer was accepted.
How did you finance this deal?
DSCR loan. 20 year amortization. Variable rate, fixed for five years.
How did you add value to the deal?
Nothing yet. Three tenants in place. Repairs and updating can be done in the future at turn-over.
Lessons learned? Challenges?
Conducted a thorough analysis and offered a number that would cash flow.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
The Lyons National Bank
