Triplex long term hold

[Corey Stibbe]

Investment Info:

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

Purchase price: $100,000
Cash invested: $15,000

Triplex purchased original renters still in, rent bump Jan1 $100 per unit

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

Opportunity to have investment back in 1.5ish years

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

Found on MLS, list price was $119,000, I offered $100k they countered at $105,000, I held at $100k offer was accepted

How did you finance this deal?

Commercial real estate loan

How did you add value to the deal?

Rent bumpwill happen at end of yea

What was the outcome?

High cash flow for low dollar investment

Lessons learned? Challenges?

Great property pickup

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

Myself

[Corey Stibbe]

Quote from @Corey Stibbe:

Quote from @Andrew Freed:

@Corey Stibbe - Where can you find a triplex for $100K? That's nuts. The roof and a few heating units go and you've put a quarter of the value into the property in repairs. What kind of revenue does this property bring in? 

Hey Andrew, it is in a smaller mining town, where wages are relatively low but people enjoy living there , the triplex was purchased at $100k, all 3 units are around 800 sq ft, all with newer heating units, roof has about 5 yrs before replacement, I have put nothing into this property so far except a small rent bump, take home is around $10k annual I will have my initial investment out by the end of next year