Selling off my residential portfolio

[Kevin Hoag]

Investment Info:

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

Purchase price: $81,245
Cash invested: $30,000
Sale price: $225,000

Purchased property with bed bugs, cockroaches, rats and 3 tenants not paying rent. I was able to get all of the tenants to start paying rent, then removed all pests from the property and one by one turned over all 4 units. During this time I was able make all of the repairs and renovations to the property without having to come out of pocket.

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

Was building a residential rental portfolio

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

I found this deal on the MLS and bought it the same day that it was listed

How did you finance this deal?

I purchased this deal with cash.

How did you add value to the deal?

I was able to get rid of bed bugs, cockroaches, rats and make 3 tenants pay rent that were previously not. I then renovated all 4 units as I turned over each tenant from the property. All of this increased my gross rents and added value to the property.

What was the outcome?

I eventually sold the property for $225,000

Lessons learned? Challenges?

Buy the worst property on the street and make it the best property on the street to maximize your profits

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

Yes, I represent myself as the real estate agent and the insurance agent.