Sold one of my favorite rentals.

[Kevin Hoag]

Investment Info:

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

Purchase price: $75,000
Cash invested: $25,000
Sale price: $176,000

Purchased the property and held onto it for 3-4years. Rehabbed 2 out of 4 units and maintained 100% occupancy and collected 100% since purchase date. Sold the property in 2021 for $176,000.

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

Was looking to build a residential portfolio.

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

I found this deal on the MLS and purchased it cash within the hour that it went up for sale.

How did you finance this deal?

Purchased with cash and then the property paid for all of its repairs and turnover cost to renovate units.

How did you add value to the deal?

At the time of purchase the property was producing around 3% gross rent/purchase price.

What was the outcome?

Owned the property for 3-4 years collecting over $2500 gross rents. Decided to sell the property while the appreciation and the market value was at its peak.

Lessons learned? Challenges?

When renting to younger individual makes sure to add their parents onto the lease. This saved me throughout 2020 as the parent paid for rent for their child for over a year to keep them from getting an eviction and taking the parents down with them.

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

Yes, I represented myself as a licensed real estate agent and a licensed insurance agent.