My First Multi Family

[Monica Freeman]

Investment Info:

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

Purchase price: $30,000
Cash invested: $35,000

My first complete rehab and its a multifamily (duplex). I bought it for $30k and put $35k into it. Fully occupied. It is now worth about $144k.

What made you interested in investing in this type of deal?

I always thought multiples rents coming in was always better than one.

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

A realtor found it for me and I immediately jumped on it.

How did you finance this deal?

401k, I was laid off in February 2014 and I had $65k to rollover. I decided to go for it and bought this building instead. One of the (if not the) best decisions I ever made.

How did you add value to the deal?

Rehab

What was the outcome?

Very profitable, especially since I own in out right with no mortgage. Now I can use it HELOC to finance other deals if I choose.

Lessons learned? Challenges?

I learned the eviction process immediately because the previous tenant (that was not paying rent to the previous owner) wasn't keen on leaving. Lol. It was a great lesson for me that I wouldn't change.

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

Yes I formed a good list of contractors (HVAC, Electrical and Plumbing).