Multi-family Rental with an ROI of 15%

[Juan Ayala]

Investment Info:

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

Purchase price: $124,000
Cash invested: $28,054

Large multi-family. Renting for annual income of $21,600.

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

Multiple doors and good opportunity to house hack.

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

Zillow. Offered $14,000 less sell price, seller countered at $124,000.

How did you finance this deal?

Conventional 15% downpayment.

How did you add value to the deal?

Made money at time of purchase. Appraised at $144,000. with a capital valuation of $170,000. Since than the housing market has increased 15% annually.

What was the outcome?

Originally $20,400 annually.

Lessons learned? Challenges?

Don't always trust inspectors. This property had a roof leak that the inspector overlooked. At a cost to me of $6,350.