My First Buy & Hold 4-Plex
Investment Info:
Small multi-family (2-4 units) buy & hold investment.
Purchase price: $665,000
Acquiring this 4-plex became a reality due to my involvement with the property management company I contract work for. I needed to have a strong relationship with the company in order to leverage their assets for financing and to give credence that I am a trustworthy partner. In addition to leveraging assets and partnership, I also leveraged the property management’s network for possible financiers. I developed a rapport with the selling party by managing the property.
How did you finance this deal?
Acquiring this 4-plex became a reality due to my involvement with the property management company I contract work for. I needed to have a strong relationship with the company in order to leverage their assets for financing and to give credence that I am a trustworthy partner. In addition to leveraging assets and partnership, I also leveraged the property management’s network for possible financiers. I needed to have a strong relationship with the pre-existing owner – which I had developed while
Lessons learned? Challenges?
-The previous owner occupant needs to vacate the property in a timely manner
-2 tenants have not been paying rent in lieu of COVID
-Property have proven somewhat difficult to lease in the past
-coordinating work with vendors
-qualifying for LCF for nonpaying tenants
-complying with insurance specifications *tree trimming, ext. painting, new facia board
