8 Unit (two 4 plexes)

[Sarah Akin]

Investment Info:

Large multi-family (5+ units) buy & hold investment.

Purchase price: $440,000
Cash invested: $120,000

Two 4 plexes connected by a parking lot purchased, all but 1 unit was occupied.

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

I was looking at a different property similar a couple little towns away which was sold before I could view the property.

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

My realtor ask the sellers realtor of the other property if they had any others they'd want to part with and sure enough, they were already thinking of selling our deal.

How did you finance this deal?

commercial financing

How did you add value to the deal?

We had one empty unit, gutted and rebuild the bathroom and we've slowing been replacing carpet with LVP as we save up funds. We've also been increasing rents by 2% annually.

What was the outcome?

Positive cash flowing asset with excellent tax savings

Lessons learned? Challenges?

Don't trust the sellers numbers, always do my own analysis.

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

Yes, having an excellent realtor is a huge asset.

[Sarah Akin]

Reference to tax savings would be depreciation mainly. We are also small business owners so we were able to see a huge decrease in our quarterly tax payments!