“Buy Right, Hold Long: Turning a $1M Multifamily Into a Value-Add Opportunity.”
Investment Info:
Small multi-family (2-4 units) buy & hold investment.
Purchase price: $886,000
Cash invested: $44,300
I focus on buy-and-hold small multifamily properties in strong locations. I acquired 1927 NW 20 Ave in Miami from a retired owner who had units rented far below market at about $1,200/month. The property was a solid asset with clear upside. After a light rehab and improved management, rents increased to about $2,200 per unit, significantly improving the income and long-term value of the property.
What made you interested in investing in this type of deal?
The main attraction was the upside. The property is in a great location and the previous owner had rents around $1,200, well below market. I saw an opportunity to increase income through light renovations and better management. I also structured the deal with only 5% down and a 3% seller contribution, allowing me to control a strong asset with minimal capital.
How did you find this deal and how did you negotiate it?
I found the property off-market through a wholesaler. He had it under contract but didn’t have a buyer ready to close. Several investors looked at it but were waiting on financing. I stepped in, showed I was serious, and negotiated time to secure the loan. Since no one else was ready to perform, he worked with me and the deal came together.
How did you finance this deal?
5% down, 30 year fixed
How did you add value to the deal?
I focused on simple upgrades that improve tenant appeal without over-renovating. I installed new kitchen and bathroom cabinets, stainless steel appliances, new central AC units, vinyl flooring, and fresh paint. I also refreshed the bathrooms by painting the tile. These updates modernized the units and made them much more attractive to renters.
What was the outcome?
After completing the upgrades, I raised rents from about $1,200 to around $2,200 per unit. The property went from an underperforming asset to a clean, updated building with stronger income and better tenants. I was also able to control roughly a $1M property with only 5% down and a 3% seller contribution.
Lessons learned? Challenges?
One challenge was financing. Because I put very little money down, the loan came with a 7% interest rate and a higher mortgage payment, which limits cash flow. Another issue is the property has only one water meter, so I cover the water bill. Still, the long-term value of the asset and rent growth make it a strong hold.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
I handled most of the deal myself. I’m a realtor and manage my own portfolio, so I stay involved from acquisition and negotiation to renovations and property management. Being both an agent and an investor allows me to analyze deals from an ownership perspective and focus on long-term performance.
