Buy & Hold 4-plex in Oceanside, CA

[Tida Hamilton]

Investment Info:

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

Purchase price: $810,000
Cash invested: $50,000

4-plex one block from the beach in Oceanside, CA. Purchased in 2004.

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

We knew buying by the beach was a no-brainer. Oceanside is one of the least expensive coastal communities in So. Cal and it has gone through a lot of revitalization in the past few years.

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

I am a Real Estate Broker and found this property on the MLS. There were multiple offers but the Sellers felt more comfortable selling to a professional.

How did you finance this deal?

This property was purchased in 2004 when they had loan products that only required 10% down on investment properties.

How did you add value to the deal?

We do light renovations. The location is what people are after. We haven't made any huge capital improvements because there is definitely a future development opportunity that we may pursue in a few years.

What was the outcome?

Our rents have been increasing and the quality of tenants have improved as the years go on.

Lessons learned? Challenges?

We definitely had our fair share of problem tenants in the first few years but we learned a lot about how to vet them properly and the red flags to avoid.

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

I represented myself.