Turned 2 unit multifamily dwelling into cash cow.

[Jason Jones]

Investment Info:

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

Purchase price: $215,000
Cash invested: $15,000

This was a 2 unit multifamily dwelling in a stable and growing area.

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

Transitioning from single family holds to multifamily holds.

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

I found this on the MLS and negotiated with the selling agent.

How did you add value to the deal?

I had to have property tuckpointed and roof repairs. However, for the sell the seller made a poor attempt to update with cheap material and poor craftsmanship. I will be able to use the poor renovation for at least three to five years before having to redo.

What was the outcome?

I turned the second floor unit into an AirBnB and put a long term tenant on the 1st floor. Regular rent is $1k per month and the bnb, so far, has avg about $2k per month. This property also has a detached two car garage that was able to rent out for $175 per month on neighbors.com.

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

I am a Licensed Real Estate Broker.