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Updated 12 months ago on .

User Stats

6
Posts
5
Votes
Cassy Trask
  • Investor
  • KNOXVILLE
5
Votes |
6
Posts

Spring Dr. - mom-inlaw suite

Cassy Trask
  • Investor
  • KNOXVILLE
Posted

Investment Info:

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

Purchase price: $220,000
Cash invested: $5,000

Purchased a mostly turn-key property with a main house and an In-Law detached suite. Able to rent both MTR. Input new flooring, new HVACs and had it at a total value of $18k. Had it reappraised 2 months later. It appraised for $70k more. I was able to refi (DSCR - 4.5% - 80% LTV) out all but $5k of my own money. It is now 2.5 years later and we have had around 92% occupancy and average cashflow of $900.00.

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

Seeking my first small multi-family and had cash to purchase.

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

This was found on the MLS. In a hot market I was one of over 20 bids. I bid cash and waived my inspection and was able to beat out bids that were $15k over mine.

How did you finance this deal?

I paid cash initially to win the bid, but then cash refi out 2 months later.

How did you add value to the deal?

We didn't have to do much on this, so this one will appreciate over the long run due to the growth in the area. We did however, put in brand new HVAC to both units, new flooring in the bigger unit and then furnished them nicely to rent MTR. n This location is 2 miles from one of the largest hospitals in Knoxville and only 3 miles to the college and downtown.

What was the outcome?

I was able to refinance out all my own cash input, other than $5k at initial refi. We know cash flow an average of $900/mo.

Lessons learned? Challenges?

I don't regret waiving my inspection (or ability to negotiate on that), but I probably would have sent a few trades through. I had some minor water leaks and some subfloor issues that overall did not amount to much, but I had to have an vacancy to fix later.

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

I acted as my own agent.

  • Cassy Trask