Multi family Investment style

[Craig Larrain]

Investment Info:

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

I am invested in single family and multifamily. Many properties needed updates and complete renovations which I have managed.

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

I was a realtor at the time and my client backed out of the deal. My belief was that it was a good deal and she said I should buy it so I did.

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

Found it on the MLS and negotiated it for my client. When she stepped out I stepped in and bought it.

How did you finance this deal?

Pulled out equity on another property and also used 1031 funds from another sale.

How did you add value to the deal?

Update kitchens and bathrooms

What was the outcome?

Still own the property and it is cashing flowing nicely.

Lessons learned? Challenges?

It was a challenge as three of the five tenants moved out upon purchase. This allowed me to renovate the vacant apartments and bring the units up to market rent. I hired a manager and quickly realized his business model was to get landlords in a panic about a minor repair or create a repair so I decided to self manage rather then get ripped off. I worked with an agency that sublet the apartments and haven't had a vacancy in over 5 years. They also took care of most repairs.