Two single family homes, One lot
Investment Info:
Small multi-family (2-4 units) buy & hold investment in Grand Junction.
Purchase price: $190,000
Cash invested: $5,000
This property consisted of two small single family homes on one lot. They were both way under rented and didn't even come close to the 1% rule.
What made you interested in investing in this type of deal?
The ability to purchase a property with two or more units wasn't real common in my market at this time. Along with that, the location was the main sale point. It is only two blocks from the University.
How did you find this deal and how did you negotiate it?
Found the property on the MLS listed at $195,000. During the inspection period was able to get the price down to $190,000.
How did you finance this deal?
Conventional financing with a personal loan for the down payment. Nearly 100% financed.
How did you add value to the deal?
Slowly increased rents. Once one tenant moved out, did a complete reno and nearly doubled the rent.
What was the outcome?
Still holding. Never vacant!!
Lessons learned? Challenges?
Get the sewage scoped in older homes!! The drainage was old Orangeburg pipe and was about $7500 to replace.
