My fifth investment property

[Tim Mieney]

Investment Info:

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

Purchase price: $230,000
Cash invested: $50,000

My fifth investment property, a triplex (always wanted one). During the craziness of Covid, we were trying to do everything we could to get our money into hard assets. This property is very unique because the upstairs unit is a huge, multi-level 3 bedroom that feels like its own house. There's a front 2BR unit with its own entrance and a lower 2BR unit that shares a common area with the upstairs unit. We inherited one tenant (the previous owners daughter) who was in the main 3BR unit paying way below market rent. The other two units were vacant and needed to be updated. We updated and rented the two vacant units and gave the previous owners daughter 6 months to find somewhere else to live (she was looking for a house out of state). Once her unit went vacant we made a couple small updates, had the apartment cleaned and it's now rented at full market value. All tenants are on Auto-Pay and even though we paid a premium compared to previous deals, this property is in an appreciating area and is by far my favorite property we currently own.

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

The location is excellent and we have always wanted a triplex.

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

An agent and friend brought it our way prior to hitting the market.

How did you finance this deal?

Private lender and personal capital.

How did you add value to the deal?

We updated the units and brought rents to market rates.

What was the outcome?

Still operating with happy tenants!

Lessons learned? Challenges?

Always look in a drop ceiling... After closing and during rehab we found a major lvl being supported by a ratchet strap... We had a support post installed and all is well now, but it was a major overlook and lesson learned on our part. We also uncovered several smaller issues we didn't anticipate, but uncovering these issues and addressing them has allowed us to further strengthen our asset.

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

Real Estate Agent