Moses Lake Multi family

[Lacey Hunter]

Investment Info:

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

Purchase price: $175,000

1st of 3 Moses Lake fourplexes co-located with on site parking, laundry, mailboxes and plenty of green space for walking pets.

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

Leverage, leverage, leverage.

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

This deal was posted along with many others by the same broker, owner, price and at the same time on MLS - I wasn't sure why a seller would dump all of their inventory concurrently - turns out that they'd legitimately won the lottery, purchased rental real estate across Grant County in bulk and decided to liquidate all of it at once instead of taking a strategic parcel by parcel approach. I provided my own desktop appraisal to support the offer we made (30% lower than list) and was accepted.

How did you finance this deal?

Conventional 30-yr fixed

How did you add value to the deal?

The building was in need of repair across the board from interior to landscaping... the prior owners were paying for electricity out of pocket so prioritized that as the first 'fix.' Scoped and commissioned work with a local electrician + approval from the county to split the electricity so that each unit had its own meter and could be assessed individually. This bump in cash flow plus landscaping and exterior paint facilitated a successful cash out refi in 2019, 12 months post purchase.

What was the outcome?

Very successful.

Lessons learned? Challenges?

Ignore the listing price and do your own math!

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

Jennifer Kron and the team at Moses Lake Realty Group are outstanding. Highly recommend them for all aspects of real estate purchasing, property management, and sourcing good contractors.