Updated over 6 years ago on .
South Gate 4plex in California
Investment Info:
Small multi-family (2-4 units) buy & hold investment.
Purchase price: $230,000
Cash invested: $7,000
Bought in 2001 and has tripled in value.
What made you interested in investing in this type of deal?
My dad used to tell me that the only business in the world where you make money while you are sleeping is real estate because on the 1st of the month..even if you have done nothing..someone owes you money.
How did you find this deal and how did you negotiate it?
I found another property in a real estate listing magazine and I called the realtor and the property was under contract but he had another property that had just fallen out of escrow and this was that second property.
How did you finance this deal?
FHA. 3% down. Back in 2001.
How did you add value to the deal?
Updated flooring; painted exterior to make more appealing and cemented a portion of the front instead of patchy grass.
What was the outcome?
It's been a money maker for us.
Lessons learned? Challenges?
We did have to evict one tenant and I did it myself but I used to just use an eviction service (attorney) because it will go faster and they know exactly what to do. I have a full time job and do not have the time.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
I worked with a real estate agent.