units 10-13 for my portfolio

[Kevin Hoag]

Investment Info:

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

Purchase price: $64,000
Cash invested: $10,000

4 unit apartment building that has three 1bedroom units and one 2 bedroom unit. Property is a cashflow machine that has had the units and major mechanicals all updated. Any and all repairs/updates have been paid for with collected rents. This was units 10-13 for my portfolio and my third 4unit building.

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

large cash flow with low expenses

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

I found this deal on the MLS and negotiated the deal myself with the sellers real estate agent.

How did you finance this deal?

I purchased this property with cash.

How did you add value to the deal?

I renovated each unit as they were turned over. I also updated 3 out of 4 furnaces and 3 out of 4 hot water tanks. I have done repairs to the siding, windows and roof. All repair/ renovation has been paid for through the collected rents.

What was the outcome?

I currently own the property and I am renting it out as a long term rental. The property is the last building in my residential portfolio and will be sold shortly. It has scene over 100% appreciation since I purchased it.

Lessons learned? Challenges?

This property is located in a much more rough neighborhood than any of my other investments and learning the struggles the tenants have has been a learning curve. I have had to work with tenants and be more forgiving with late rent or allow tenants to make bi-weekly rent payments to be able to collect 100% rent. Work with your tenant before simply going through an eviction.

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

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