Multi-Family Rental Property

[Jared Martz]

Investment Info:

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

Purchase price: $500,000
Cash invested: $15,000

Four Unit Multi-family rental property. Light renovations throughout the units after purchase. Three of the four units have been leased and occupied. I am beginning to fully renovate the fourth apartment, this unit was rough due to a long time smoker that occupied it previously. My plans are to have this last unit renovated and leased out by the end of June.

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

This Multi-family property is one block from the ocean and zoned for another multi-family building. No HOA. Location is great.

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

MLS. This deal had a lot of back and forth between seller and buyer agents. The home inspection was not ideal and brought light to a lot of issues. I knew a ballpark figure I wanted to stay around and my agent was able to make it happen. Lots of work on his end to make this deal close. Countless calls, work with appraiser, loan team, etc.

How did you finance this deal?

FHA Loan

How did you add value to the deal?

I did majority of the renovations after purchase.

What was the outcome?

The outcome has been amazing.
Upsides:
-Bought the property under market value.
-Zoned for another building.
-The occupied units are all leased for at least one year.
-Final apartment with be all cash flow once renovated and lease signed.

Lessons learned? Challenges?

-Networking goes a long way.
-Do your research on contractors if any are used.
-Find a very good property manager, I travel full-time for my career, my property manager is a huge part in my success.

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

Victor Duval- Agent in Myrtle beach, SC.