My First Multifamily

[Brad Hunton]

Investment Info:

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

Purchase price: $100,000
Cash invested: $30,000

Bought this off market deal at the beginning of 2022. Move in ready duplex, each side is a 2/1, about $40,000 under market value. Had both sides rented out in 1 week.

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

Looking for a property that cash flowed well.

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

Off market deal from a partner of a real estate agent I knew. They were debating selling this property and I offered $100,000.

How did you finance this deal?

Conventional 30 year mortgage at 4.75%. Had to put 25% down

How did you add value to the deal?

Bought it below market value

What was the outcome?

Currently rented at market. Cash flowing well after a few small problems were repaired.

Lessons learned? Challenges?

I had to talk to 14 different lenders before I found one that would lend on this deal due to the small purchase price and my DTI. If you find a great deal, just be persistent to get it done.