2019 Four-plex investment
Investment Info:
Small multi-family (2-4 units) buy & hold investment.
Purchase price: $287,000
Cash invested: $18,000
Fourplex built in the 1960's. Four identical units, 600 sf each. All 2 bedroom/1bath units.
What made you interested in investing in this type of deal?
It was my first deal and honestly I learned a lot. Four units gave me some security that I would always be profitable because I had tenants to pay the note, and chances are I wont ever have all four vacant. Now I have come to love small multi-family. Cash flow has been great.
How did you find this deal and how did you negotiate it?
As a Realtor, I found this 2 hours after it hit the market and had to make a sight unseen offer. No viewing until inspection. it was at $310,000 list price and we got it for $287,000 after the inspection. It needed a new roof but Hurricane Sally handled that for us and we got a new roof for just our deductible.
How did you finance this deal?
I did a 30 year fixed, conventional loan.
How did you add value to the deal?
Raised the rentals over the past two years from $750 each unit to $900-1000. $3900 total
Lessons learned? Challenges?
I took a inspector friends "free inspection". Let's just say, you get what you pay for. Many finding later that I wish I would've known.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
I represented myself.
