Triplex for the Win!

[Gregory Schwartz]

Investment Info:

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

Purchase price: $400,000
Cash invested: $49,000

Our most recent purchase is a single-family home that has 2 garage apartments in the back yard making it a triplex.

Old but a well-maintained house in a great section of town. We hope to hold this for years to come maximizing income by long-term and short-term renting the units.

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

We wanted a high-end rental in a great location that could benefit from short-term rentals.

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

MLS, we offered slightly under asking after building repport with the listing agent.

How did you finance this deal?

Used partnership and a 25% commercial loan.

How did you add value to the deal?

We will increase the income by Airbnbing the units.

What was the outcome?

20 years from now it will be worth 5 times what we paid for it :)

Lessons learned? Challenges?

The biggest lesson learned with this one is that having an out-of-state partner can make closings a little more complicated and to be prepared to roll with the punches.