My first multi-family experience (Kansas City, MO)

Investment Info:

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

Purchase price: $360,000

Cash invested: $110,000

3 duplexes purchased all at once for $120,000 each from the same seller. Long distance, without seeing them in person, while working a full time job. The process of buying these properties took more of my time than managing them for an entire year. My management company handles everything.

When purchased:
1 vacant unit, 4 units rented at $625/mo, 1 unit rented at $575/mo

Current:
All 6 units renovated and rented at $825/mo

All units have 3 bed/2bath and 1 car attached garage.

These duplexes are likely worth more now, but I haven't had them appraised.

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

I found these properties on the MLS.

How did you finance this deal?

Traditional financing. 25% down.

How did you add value to the deal?

Cosmetic renovations

What was the outcome?

Over 20% cash on cash returns.

Lessons learned? Challenges?

I've learned the power of multi-family investing. I hope to scale my business so I can buy bigger properties in the future. Down-payment capital seems to be my most difficult area. I do save about 70% of my income, but it still seems to be the limiting factor.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

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