Value Add/Buy & Hold

[Mitch Hartford]

Investment Info:

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

Purchase price: $206,000
Cash invested: $90,000

3 family value add. Needed a ton of work, lots of sweat equity realized.

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

My construction background could see the potential in this under managed, under maintained building.

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

My agent found it. I was the first to see it and put in a full price offer with only 1 contingency, bank financing.

How did you finance this deal?

20% down, 80% commercial mortgage
I got the 20% from a previous BRRRR deal.

How did you add value to the deal?

Updated all finishes in 2 of 3 units. Reworked the backyard to add parking and painted the exterior wood.

What was the outcome?

$200k equity
$2000 monthly income.

Lessons learned? Challenges?

There were two vacant units when I bought it, we remodeled one at a time. We should have attacked both units simultaneously with more people.

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

Tim Fontneau Realtor