My first MFH purchase and got it right the first time!

[McLaren G Westland]

Investment Info:

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

Purchase price: $130,000
Cash invested: $35,000

Purchased first MFH (Triplex) for $130K and it appraised for $192,500 and was fully rented. Initial cashflow was 900/mo however I renovated one unit (For $8900) and increased rent on units. New cashflow of $1400/mo and new appraisal of $252,000.

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

I wanted my first MFH and this one just happened to hit my radar.

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

Another agent in my office asked me if I was interested in the property at $180K. After meeting with the listing agent and the owner I was able to address many deferred maintenance items and low balled them just to see where their head was. They accepted my $130K offer...WOW!

How did you finance this deal?

Conventional financing

How did you add value to the deal?

Added central AC/Heat to the 3 units at a 12K cost.

What was the outcome?

Increased rent and value.