First 4-plex! Here we go multi-families!

[Mackenzie Grate]

Investment Info:

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

Purchase price: $287,500
Cash invested: $30,000

4-plex project. As tenants move out, I update each unit. :)

It's fully occupied currently and cash flowing :)

A couple of cap-ex projects coming soon though...

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

I wanted to get into multi-families and the numbers just worked.

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

MLS. It had fallen out of contract. It was heading into winter so the owner wanted to get rid of it before the "dip in prices." I made an offer, did the inspection and renegotiated it based on a couple of major expenses that popped up. (ie: the furnaces were as old as me, literally).

How did you finance this deal?

Conventional loan.

How did you add value to the deal?

One tenant moved out right after I closed (which was unexpected) so I renovated it and rented it out for market value. I will do the same as the other tenants vacate.

What was the outcome?

So far, so good. It's a great property with great tenants!

Lessons learned? Challenges?

Replace oil heating immediately. It's SUPER expensive. Also control the thermostat yourself. I had tenants who were blasting the heat and then opening the windows. Yep, that hurt. lol.

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

Hire me!