Multi-family Investment 2023

[Tracey Virtue]

Investment Info:

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

Purchase price: $215,000
Cash invested: $25,000

2 unit- Two bedroom on first floor, four bedrooms in second unit which is second and third floor.

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

I could rent out the bottom and live on top.

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

I just kept searching the MLS until I found the right deal. Someone had previously had it under contract, but that fell through, so I jumped on it. My financing was solid and I offered a little more than they were asking. Not much more. Now it's appreciated over $100,000 in equity in 2.5 years.

How did you finance this deal?

FHA

How did you add value to the deal?

I did complete reno on first floor and redid kitchen and bathroom on second floor.

What was the outcome?

I haven't had an appraisal done, but I'm sure it's added even more in equity. I certainly can get more in rent if I wanted to.

Lessons learned? Challenges?

Don't rent to friends. At least if strangers test your boundaries there's no hard feelings.

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

I worked with Tysharian Martin, who I would highly recommend. She encouraged me to become a realtor myself! Love her to pieces.