Property 2: Turn Key Investment

[Aniqah Kalam]

Investment Info:

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

Purchase price: $1,380,000
Cash invested: $450,000

I was looking for a multi-family investment property in the same neighborhood I live in so I could easily manage it myself. It was expensive but still a good deal for a new building in Long Island City.

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

I was looking for something with at least 3-4 apartments to insure that it would cash flow.

How did you finance this deal?

I paid 30% down and took out a mortgage.

Lessons learned? Challenges?

This building has a tax abatement for another 5 years and as a result, it is rent stabilized as well. I had to learn about all the rules and regulations regarding rent stabilized buildings and tenants. I used to be under the impression that buildings over 6 units can be rent stabilize but clearly that isn't always the case. I had to sit with a professional and figure out the legal rents for each apartments and make sure there aren't any overages because treble damages cases can be very costly.