Harrisburg Multi (4)

[Richard Clark]

Investment Info:

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

Purchase price: $92,000
Sale price: $145,000

4-unit apartment building in Harrisburg purchased for $92,000, 37% rental increase,
Cash Flowed $1800/mo, sold for $145,000.

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

The cash flow was great and tenant stability had been good.

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

Another investor who moved out of state was unloading his portfolio.

How did you finance this deal?

Conventional

How did you add value to the deal?

Raised the rents. Reduce expenses.

Lessons learned? Challenges?

Property Management is a 'fee-based' service and so does not align with the business model of an investor. Cash flow from lower-end properties may seem good at the outset but expenses and capital costs can add up quickly. I didn't lose money but I learned to pay attention to expenses, including the nickel-and-diming of PM from this deal.