Hidden Gem: Single Family with private apartment

[Allison Butler]

Investment Info:

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

Purchase price: $460,000
Cash invested: $71,000

Hidden multifamily... I purchased a 4 bed 3 bath house which from another investor. It has a basement apartment with separate entrance and driveway. I set this property up as a short term rental and hired a property manager.

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

Wanted a property with ADU or separate basement apartment

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

MLS

How did you finance this deal?

Conventional Loan; 5.25%

How did you add value to the deal?

Remodeled the basement apartment (new kitchen cabinets, remodeled bathroom, new flooring, paint)

What was the outcome?

Construction took longer than expected but I had a good team

Lessons learned? Challenges?

Contractor delays but nothing unexpected; waiting to have more cash flow. Both units have been operational for 6 weeks.

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

Yes, I will share information with anyone interested.