Expanded to a 4-plex in Anchorage

[Samuel Yoo]

Investment Info:

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

Purchase price: $435,000
Cash invested: $116,000

Purchased a 4-plex in Anchorage, AK with conventional financing (25% down)

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

Looking for long-term, buy and holds.

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

Found through a local realtor. Negotiated the price from $475,000 down to $435,000

How did you finance this deal?

25% down, conventional fixed 30-year

How did you add value to the deal?

Given my experience as a realtor, I did much of the heavy lifting with inspections, negotiations, etc. As soon as it closed, I renovated two of the vacant units and turned them around to rent within 2 weeks.

What was the outcome?

Overall, the outcome was good with a nice cash-flow, however it was a little more work than anticipated. Finding a property manager, bringing the units up to standards, and finding the right tenants were a challenge.

Lessons learned? Challenges?

Interview several realtors and ask them about how they run a deal. My realtor initially did great work with deal analysis and showings, but ended up doing very little work once my property went into escrow.

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

Worked with Ryan Groeneweg at Mortgage Brokers of Alaska -- solid experience.