Brick triplex in the heart of downtown.

[Jacob Welbourne]

Investment Info:

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

Brick triplex in a great location on main street in Lavale MD. Total of 9 bedrooms, 4 baths. Upstairs unit is 5 bed 2 bath, first floor unit is 3 bed 1 bath, basement unit is 1 bed 1 bath. Separate garage building.

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

Great cash flow, with equity potential. Solid built property in need of cosmetic updates.

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

Purchased previously from local housing authority and this was their last property they were selling. Off market deal, took over 6 months to complete without the use of RE Agents.

How did you finance this deal?

30 year fixed rate mortgage 3.375%. Used HELOC for down payment.

How did you add value to the deal?

Cosmetic upgrades including new appliances, vanities, lighting, flooring.

What was the outcome?

Upstairs unit is currently rented for $1400 month with a great tenant. Currently working on the downstairs unit and will fix up basement unit in the future.

Lessons learned? Challenges?

Initially was going to purchase with non-profits tenants in place (was a group home with disability accommodations in place). However due to Covid and staffing issues, they left. Now the upstairs unit rents for about the same amount as I would have gotten from both units had they stayed. Plus it gave me a chance to really clean up and refresh the place.