Updated 3 months ago on . Most recent reply
Small multi-family purchase (1031 exchange), NOI improvement with no upfront CAPEX
Investment Info:
Small multi-family (2-4 units) buy & hold investment.
Purchase price: $290,000
Cash invested: $290,000
4-plex in Syracuse, purchased at 60% of average market rent. One unit moved out at closing, $3k turnovered and rented at market. Other 3 units raised rent to 90% of market with tenant staying without improvement.
What made you interested in investing in this type of deal?
High cashflow in hot rental location
How did you find this deal and how did you negotiate it?
On zillow - listed for over a year. Seller tried to sell for many times but purchase fell through. Offered with 10% discount to buffer in potential capex buffer and was accepted by seller.
How did you finance this deal?
1031 exchange
How did you add value to the deal?
Simple rent increase to slightly below market
What was the outcome?
Successful so far - however, there are delayed CAPEX that are gradually coming up (hot water tank, etc.)
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Stephen Schmitt at Hunt Real Estate is the best.