Pierson Place Triplex
Investment Info:
Small multi-family (2-4 units) buy & hold investment.
Purchase price: $379,000
Cash invested: $220,000
Triplex in Pierson Place Historic Neighborhood:
1 x 3 bed 2 bath with large yard and hot tub
1 x 1 bed 1 bath added in 2021 with small yard
1 x Studio 1 bath
What made you interested in investing in this type of deal?
Value add opportunity to turn duplex into triplex and cash flow
How did you find this deal and how did you negotiate it?
MLS, used a realtor, slow market in 2018. Was owner-occupied property.
How did you finance this deal?
Conventional financing as owner occupied, lived in it for 5 years as we added value and stabilized tenants and saved up for our dream house
How did you add value to the deal?
Added 3 unit which is a 1 bed 1 bath. Could not go larger due to parking and historic requirements
What was the outcome?
Still own as a solid cashflow property, we have moved out and all 3 units are rented.
Lessons learned? Challenges?
Rented to one tenant out of desperation with lower credit score and he was always late with the rent, checks bounced…
When we rented out the main house, we assumed we could rent to a family and kept our kids playground set in the backyard. This made it more difficult to rent! We also didn’t want pets.
Ultimately (through testing with the ads) we found that young professionals with pets were our target demographic, and we are to get it rented.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Brissa Carvajal is our agent. She is also a General Contractor with a lot of connections and experience.