4-Family Buy and Hold

[Coty B Lunn]

Investment Info:

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

Purchase price: $205,000
Cash invested: $27,112

Bought for $205,000 in the Maine-Endwell school district

Monthly rent (pro forma with 3 month stabilization) $4,800

Taxes: $9,238

Insurance: $2,642

Gas/electric: $0

Water/sewer: $2,451

Total expenses: $14,280

I used a conventional 10% down. With downpayment and closing costs, it came out to $27,112.

I expect to have about $10,000 in repairs on the high side.

The rents are as follows (pro forma): $1,400 (3 bed), $1,600 (3 bed), $850 (1 bed), $850 (1 bed)

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

Trying to add to my portfolio! This gives me a total of 16 apartments now!

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

Unfortunately, I didn't have much negotiation leverage. Many others offered on it and I ended up paying $16,000 over the asking price. It is still a good deal and the numbers work great!

How did you finance this deal?

I financed this deal with a 10% down conventional loan. For $205,000 and all in closing costs, it came out to $27,112.

How did you add value to the deal?

I am adding value to the deal by renting out the one vacancy. I expect to get $1,400/month. I am doing minor repairs <$2,000