Updated over 4 years ago on . Most recent reply
Fourplex at 8.5% Cap rate!
Investment Info:
Small multi-family (2-4 units) buy & hold investment.
Purchase price: $550,000
A year ago I purchased my first Owner Occupied Fourplex from a For Sale By Owner. I was able to negotiate a 7% commission and for the boiler to be replaced. I used the commission as my down payment. Sweet deal
What made you interested in investing in this type of deal?
House Hacking and having a supplement to my rent while building equity
How did you find this deal and how did you negotiate it?
Driving around, saw tiny for Sale Sign and gave them a call. Started to negotiate and worked in a large commission so I didn't have to take any money out of pocket for Down payment. Turned out to be an awesome deal
How did you finance this deal?
FHA 3.5% Down
How did you add value to the deal?
We are doing new paint and floor in each unit and an exterior paint job, potentially adding in unit washer/dryers
What was the outcome?
Cheaper rent, Equity built and lots of lessons
Lessons learned? Challenges?
CHECK FOR BED BUGS!!! Vet tenants already in units. Sign new leases immediately with Cleaning amendments
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Myself ;) I will find and negotiate you as SWEET deal