Second Fourplex - 14 days after our first property.
Investment Info:
Small multi-family (2-4 units) buy & hold investment in Machesney Park.
Purchase price: $240,000
Cash invested: $63,500
Contributors:
Tara Shedden
Self-managed fourplex; landlord pays water, sewer, trash, landscaping, snow removal.
What made you interested in investing in this type of deal?
This was the second property we purchased; closing just 14 days after our first property.
How did you find this deal and how did you negotiate it?
It was listed at $250,000 and the owners were selling another fourplex on the same street. We offered $240,000 each for both.
How did you finance this deal?
5-year loan with a balloon payment at 5.555%, 25% down.
How did you add value to the deal?
It was our first deal and has cashed-flowed since day one. It is also gave us experience with property management.
What was the outcome?
We are still cash-flowing and looking to scale our business.
Lessons learned? Challenges?
We attempted to renovate a vacant unit. But it took too long and cost too much. We would have been better off just renting as is and getting a bit less in rent. However, it was an invaluable learning experience. I would love to post that everything went awesome... but that wouldn't really benefit anybody.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
We worked with the owner of Key Realty, John Murray on this deal. He was instrumental in getting us to jump into real estate investing.
