Updated about 2 years ago on . Most recent reply
Buffalo NY (west side) Multi Family
Investment Info:
Small multi-family (2-4 units) buy & hold investment in Buffalo.
Purchase price: $167,000
Cash invested: $302,000
BRRRR, Buffalo, NY
Exterior-Rear porch was removed and replaced with new entrance stairs, the front porch deck was rebuilt and the roof and gutters were replaced, new sheeting included. New concrete stairs on the front.
Interior--Kitchens and baths were gutted, house received new wiring, all walls and hallways were painted. New flooring and windows throughout. Added in unit laundry to the first floor apartment. Brand new kitchens and baths. Mechanicals completely updated.
What made you interested in investing in this type of deal?
Appreciating neighborhood
Located on a main street in the neighborhood
How did you find this deal and how did you negotiate it?
Found on MLS, Offered cash at a lower than asking price. Looking back I wish I had negotiated even more.
How did you finance this deal?
Cash
How did you add value to the deal?
Redoing everything and making sure we didn't miss anything that would sour all the effort that went into this place.
What was the outcome?
A strong refinance rate at $382,000 that ended up having me leave about $45K in this deal with all bank fees included.
Lessons learned? Challenges?
Plan to do everything. We considered skipping removing the popcorn ceiling, this ended up getting done. We thought the back porch would be fine in its purchased condition, it ended up being a liability and getting removed and replaced with a set of stairs. Once done with everything, the front concrete stairs were not in good shape and we ended up opting to do about $6K in concrete work as well.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
I was my own agent.
