First Quadplex Atlanta

[Toby Kim]

Investment Info:

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

Purchase price: $410,000
Cash invested: $43,000

4 units. 2/1 each unit. Will attempt to stabilize all rents at $1200/month for $4800/month gross rent.

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

I wanted to scale up buy and holds. I believed that small multifamilies were the way to go for my particular strategy and financing options.

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

MLS. Realtor negotiated down from $450k. I offered to close in 30 days and showed all my paperwork and funds to show I had all my ducks in a row and extremely motivated to close. I even offered a 15k EMD. I offered $400k total. We settled at $410k.

How did you finance this deal?

FHA loan. Arguably the greatest financing product known to mankind.

How did you add value to the deal?

Rents ranged from $750-$1200/month. Thought with another $20-40k I could bring it all to $1200 base and let inflation take care of the rest of the increases. Using the 1% at $4800/month means it would be valued at $480k.

What was the outcome?

Still working on it. Finished renovating the unit I lived in and will be renting it for $1200/month. I put in $7k.

Lessons learned? Challenges?

Inheriting tenants are tough. I got lucky with a few of them but they also carry the lowest rents. I have 1 unit that are a bit of a headache in terms of rent collection (cash only for them) and bringing their daughter around (she is going through mental issues but unable to get help).
I hope to fix the issue soon with a turnover.

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

Yes. Breionne Jackson of NFTW Realty Team in Atlanta, GA. She’s the greatest. She has a great team of vendors supporting her so closing was pretty smooth. She’s also pretty well connected to the realtors in the area so that’s helpful when negotiating and trying to get your complicated “creative” offers heard.