First Buy and Hold Rental Property

[Franklin Vickers]

Investment Info:

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

Purchase price: $370,000
Cash invested: $18,500
Sale price: $650,000

Legal duplex property that we converted into a 4 unit home.
Rented 3 units as long term rentals, and the 4th unit rented as a successful Air BNB.

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

I was interested in making the leap into real estate investing. Through a partnership we were able to secure the property. I was interested in having 3 or more units since I knew it would cash flow better.

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

Found it on the MLS. Negotiation was straightforward and done with a realtor.

How did you finance this deal?

Traditional bank financing.

How did you add value to the deal?

Built a fire escape going to the third story which made that unit legal. Also divided one unit into two separate units, changing the property from a duplex to a quadplex with much higher ROI.

What was the outcome?

After holding for 3 years , ended up selling the home for a $280,000 net profit plus equity pay down while we owned it.

Lessons learned? Challenges?

Even if you're not 100% sure what you're doing, jump in. You'll learn what you need to learn as you go with the resources available online.