Quaint Four-Plex on a Quiet Cul-de-Sac

[Roschelle McCoy]

Investment Info:

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

This quaint, all-brick 4-plex offers our residents security and privacy in a serene setting. Each unit boasts 2 bedrooms, 1 bath, large eat in kitchen, spacious living room, in-unit laundry and attached garage. Neutral paint colors and laminate flooring help make the place warm and cozy, all while feeling like a place you want to call home. Located on a quiet cul-de-sac, there are no neighbors to the east of the building making for peaceful days and quant evenings to enjoy the sunset. This is a smoke-free and pet-free building.

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

This property was our first real estate investment. We jumped in full force with a multifamily unit knowing that one vacancy wouldn't entirely kill our monthly cashflow. The all brick exterior was very appealing, you don't find many newer properties that are 100% brick. It's a solid building that we knew would last a lifetime. All the units were fully rented, which minimized our risk going into this deal.

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

It was listed on the MLS and we used a broker to help us purchase. We negotiated via our broker, taking into account how long the current owner had owned the property, what they had purchased it for and how much income it generated.

How did you finance this deal?

We financed using a wrap around (also called a blanket) mortgage. We had a substantial amount of equity on our primary residence that was used to provide financing with no money out of pocket.

How did you add value to the deal?

We've renovated two of the units and raised the rents for greater cashflow. We have two long term residents in the other two units that are getting steady (but smaller) rent increases. After owning the building for four years we converted one unit to a furnished rental and are now grossing 3x the monthly rent that the unit cash flowed when not furnished.

What was the outcome?

We still own this building and plan to hang on to it for a while. It generates solid cash flow and we have some really great residents that love to call this place home.