Updated over 6 years ago on . Most recent reply
My first multi-family experience (Kansas City, MO)
Investment Info:
Small multi-family (2-4 units) buy & hold investment in Independence.
Purchase price: $360,000
Cash invested: $110,000
3 duplexes purchased all at once for $120,000 each from the same seller. Long distance, without seeing them in person, while working a full time job. The process of buying these properties took more of my time than managing them for an entire year. My management company handles everything.
When purchased:
1 vacant unit, 4 units rented at $625/mo, 1 unit rented at $575/mo
Current:
All 6 units renovated and rented at $825/mo
All units have 3 bed/2bath and 1 car attached garage.
These duplexes are likely worth more now, but I haven't had them appraised.
How did you find this deal and how did you negotiate it?
I found these properties on the MLS.
How did you finance this deal?
Traditional financing. 25% down.
How did you add value to the deal?
Cosmetic renovations
What was the outcome?
Over 20% cash on cash returns.
Lessons learned? Challenges?
I've learned the power of multi-family investing. I hope to scale my business so I can buy bigger properties in the future. Down-payment capital seems to be my most difficult area. I do save about 70% of my income, but it still seems to be the limiting factor.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
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