Investment Info:

Small multi-family (2-4 units) buy & hold investment in Memphis.

Please see details below on this buy and hold project which is yielding me 17.3% ROI.

Purchase Price $59,500

Repairs $9,000

Total $68,500

Monthly Income $1,500

Monthly Expenses $513

Monthly Cash Flow $987

Annual Income $18,000

Annual Expenses $6,159

Annual Cash Flow $11,841

ROI 17.3%

What made you interested in investing in this type of deal?

Multi door units are always a plus. They are hard to find in decent areas so this was a great pick up to add to my portfolio.

How did you find this deal and how did you negotiate it?

Met seller via BP a few years ago. Seller was an out of state investor that was tired of dealing with his property manager. After 5 months of negotiating we agreed upon a price that was fair for both sides. I was able to close on this deal within 10 days.

How did you finance this deal?

Cash

How did you add value to the deal?

New roof, paint, flooring, doors, updated electrical panel, fixed plumbing, new blinds, new light fixtures, drywall repair, landscaping, final clean

What was the outcome?

Expected to rent each side for $750. Could have flipped this property with ease but decided to keep it for long term rental.

Lessons learned? Challenges?

Challenges:
Due to past tenants stealing utilities at this property I had to go through some extra steps with the utility company which was time consuming. In addition to that one of the units was vacant for almost two years so when we turned on the water we found a lot of leaks in the wall and ceiling of the kitchen. Lately, the city's code department is running behind so it took 3 weeks for them to come out and inspect the property. Thankfully everything passed on the first visit.