4 Plex in Abq NE Heights

[Shane Dolinski]

Investment Info:

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

Purchase price: $515,000
Cash invested: $115,000

4 Plex purchase. Raised rents in every unit immediately. Lost a tenant, gained another for higher rent.

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

It is right down the street from my house and I like the area. I liked the below-market rents as well.

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

It was on the MLS, I have a drip of the emails whenever a new investment property becomes available.
It was listed at $500k. I offered $500k with an escalation to $520k. I befriended the agent on the listing side and was able to find a way to work the deal (I gave the seller $1000 TOM-Time Off Market) fee to get this deal pending and under contract. Subsequently negotiated a $20k credit at closing for repairs the inspections dicovered.

How did you finance this deal?

Conventional with 20% down. Closed at 4.05% with 1.5 origination points.

How did you add value to the deal?

Immediately raised rents. Made tenants responsible to pay for Gas and Water/sewer, in addition to the electric they were paying. IN the process of changing the gas meter from a one to individuals.

Reno one unit for the new tenant. Will reno each one s they become vacant.

What was the outcome?

Cash flowing

Lessons learned? Challenges?

Changing over 1 gas meter to 4 requires the whole building's upgrades to go to newer water heaters for city code enforcement

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

Yes, myself :)