Multi Family in Buffalo, NY (BRRRR)

[Earl Altheide]

Investment Info:

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

Purchase price: $167,000
Cash invested: $302,000

Purchased a double with good bones needing a lot ofwork.

On exterior, a rear porch was removed and replaced, the upper front porch deck was rebuilt and the roof and gutters were replaced. New concrete stairs on the front.

On interior, kitchens and baths were gutted, house received new wiring, all walls and hallways were painted. New flooring and windows throughout. Added in unit laundry to the first floor apartment. Brand new kitchens and baths. Mechanicals completely updated.

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

I like starting off with a very well conditioned house that poses very little maintenance, cap-ex or vacancy expense in the future.

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

I am a realtor and negotiated the house as a cash offer.

How did you finance this deal?

The sale was completed in cash and the renovations in cash as well and we are currently refinancing the deal now to get most of our cash back.

How did you add value to the deal?

Updating everything. With quality, well done renovations, things won’t need to continually be updated in the future.

What was the outcome?

Strong tenants at good rents. A well conditioned house that people are happy to live in.

Lessons learned? Challenges?

The market has changed a lot over the last 7 months this deal has been going on, however changing market conditions didn’t ruin a good deal so there was no hesitation to move forward.

A better plan upfront can save you weeks and even months when working through a deal.

Always plan for the unexpected, the front porch roof and rear porch removal were two items that required a lot of extra time and money.

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

Yes
My company Irish Jones did the work and will manage the house. I am a sales agent and handled the transaction. The quality doesn’t change for clients.