Updated about 5 years ago on . Most recent reply
3 bed/2 bath Triplex
Investment Info:
Small multi-family (2-4 units) buy & hold investment in Copperas Cove.
Purchase price: $172,000
Cash invested: $50,000
This is a triplex with two 3/2 units and one 2/2 unit.
What made you interested in investing in this type of deal?
I like small multifamily because I can charge more for rent than I would be able to for a similar priced single family home. Also the odds of being 100% vacant are less than that of a single family. Plus I can still get conventional financing. The con is that they do not appreciate as well as a single family.
How did you find this deal and how did you negotiate it?
A realtor brought me the deal because I have been networking and telling people what I am looking for. It was listed for $180k and we negotiated a new roof and a price reduction after the inspection.
How did you finance this deal?
Conventional loan. I put this on a 15 year note. The mortgage is $1200 and when it is fully rented it will bring in $2400.
How did you add value to the deal?
I will raise the current rents and renovate the vacant unit to get it to market rents.
What was the outcome?
About 300-400 of additional cash flow plus equity growth through loan paydown and appreciation.
Lessons learned? Challenges?
I tried some negotiation tactics from "Never Split the Difference" by Chris Voss but it fell flat. There were a couple challenges with it but mainly it was because I am communicating through 2 realtors before the message reaches the seller. It just emphasizes the importance of finding off-market deals and dealing directly with the seller.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
My realtor was Nina Asbury with the Salas Team out of Copperas Cove. She did a good job. I would recommend her.