4 Unit Rome NY 13440

[Michael Miner]

Investment Info:

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

Purchase price: $25,000
Cash invested: $5,000

This is a 4 unit residential building, city water, city sewer and all separate utilities.

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

This was a 4 unit with potential for a good cashflow and a lot of future equity for the ARV.

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

Word of mouth
As a real estate broker I negotiated on my own behalf
I took the ARV and the rents after repairs value and used the income approach to figure out the value. Subtracted the 30% equity I wanted to have and the cost of repairs and holding fees. From there I figured out the max I was willing to pay for the property.

How did you finance this deal?

Hard money with repair cost added in to the loan.

How did you add value to the deal?

I used hard money which is similar to the same as cash to get the price down to where I needed it to be.

What was the outcome?

I was able to purchase the property and get the repairs completed and have owned this property since.

Lessons learned? Challenges?

Being a brick building this property was a little challenging on some of the interior repairs ( adding high efficiency furnaces and drilling through the brick, wiring, plumbing was a little different and walls needed to be furred out and insulated)

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

I am a real estate broker