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 paid a premium compared to other investments, but the location is appreciating very well.

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

The location is excellent and appreciating quite rapidly 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 and rented the two vacant units, the downstairs was much more of a hassle than we anticipated. We also inherited one tenant (the previous owners daughter) who was in the main 3BR unit paying way below market rent. After 6 months she found a house and we were able to rent her unit with minimal updates at market rate.

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 in the basement unit 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