Small Multifamily Purchase

[Billy Daniel]

Investment Info:

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

Purchase price: $150,000
Cash invested: $30,000

Contributors:
Dustin Brown

Triplex with two vacant units. All three units need only slight cosmetic rehab and will get market rents when they are ready.

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

We have been looking to grow our portfolio with multifamily units. This one popped up and was offered at less than market value.

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

We found it online and negotiated via our Realtor (me)!

How did you finance this deal?

Commercial in-house loan

How did you add value to the deal?

We will be doing some light cosmetic work to increase the rentability as well as listing it with a professional property manager.

Lessons learned? Challenges?

There were challenges associated with the paperwork regarding the entity structure and collecting signatures from two different states. A little extra communication and johnny-on-the-spot professionals and partners negated them!

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

I was the realtor for the deal, so yes!