A place where we found appreciation and cash flow

[Jamar Taylor]

Investment Info:

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

Purchase price: $705,000
Cash invested: $170,000

Our first multi!

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

I've been interested in multi-family since 2015 when I went to my first real estate seminar that the NFLPA put on. Once I acquired a few properties in California I realized it was time to move to Arizona.

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

We found this deal on the MLS. It was a doozy might I say. When we first started to negotiate the deal, covid hit. I wanted this property even though I knew covid would bring challenges. It was the location that I loved the most. There are a few other parcels that I knew with time maybe I could acquire if I jumped on them at the right time. We were able to get the home for asking. Some don't see that as a good deal, but the owner held it for us till November!

How did you finance this deal?

We did a conventional to finance this deal!

How did you add value to the deal?

During covid, we faced a ton of challenges. We had to do a full tenants turnover once covid was done. From there we added turf and a gazebo for the tenants. We cleaned up the exterior! We've also done full renovations spending about 50k in rehab in the last year. Now we are cash flowing where we want.

What was the outcome?

Unfortunately, interest rates are killing us all so we weren't able to cash-out refi. As of now, we are cash flowing right where we want. We are going to list the property because it's a great time to sell. If we don't end up selling we will keep it, refinance and scale up!

Lessons learned? Challenges?

We've learned a lot from this property! The biggest thing is having a great manager. Our first manager wasn't good and our property wasn't being ran with integrity or accountability! With time we were able to find a great manager who we value a ton. She got us right where we needed to be! She's awesome! So my advice would be to have a great manager who will keep your investment property float!

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

Jamar Taylor (retsy)
Laura Abby (Taylor St. Manager)