Updated over 3 years ago on .
1031 exchange success
Investment Info:
Small multi-family (2-4 units) buy & hold investment.
Purchase price: $520,000
Cash invested: $130,000
Rents $890-1050.
still stabilizing rents.
What made you interested in investing in this type of deal?
I have always wanted a quadplex.
How did you find this deal and how did you negotiate it?
My agent that I was looking for a owner-occupied single family, brought it to me. I never purchased that single family and bought this quad as an investment instead.
How did you finance this deal?
30% down conventional. interest rate 4%. No escrow.
How did you add value to the deal?
Move-in ready. No work needed. Evicted a tenant first month of closing due to the seller stuck a non-qualified tenant in there right before closing.
What was the outcome?
$3850 rent. $1860 PI. $450 TI. $385 PM. $150 utility. $385 CapEx + Vacancy.
NET= $620 a month.
Lessons learned? Challenges?
Did not get estoppel letters from tenants and seller, causing me not able to evict the non-paying tenant via court.
Luckily that tenant left on her own.
Difficult seller. Need a stronger agent next time.
