Cashflowing SoCal Triplex

[Reggie B Jackson]

Investment Info:

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

Purchase price: $690,000
Cash invested: $9,000

Triplex, Level C, all 2 & 1s, currently cashflowing, although one of the units is renting below market.

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

Was searching for multi-unit properties in the Southern California market.

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

Househacked using a VA loan.

How did you finance this deal?

VA loan. Lived in a unit for a year.

How did you add value to the deal?

Luckily, two tenants moved out soon after purchase, which enabled me to completely renovate the units and put them at market rates.

What was the outcome?

Value increased to over $900,000 within two years.

Lessons learned? Challenges?

Lessons: Learning due diligence and managing with property management, who tend to be poor communicators. Also the tax advantages and term family planning of LLCs and trusts
Challenges: The initial strategy to BRRRR my way to more properties and doors was canceled when interest rates increased, leaving me stuck on my super low APR. Now I'm in the midst of learning new way to scale my business because BRRRR is postponed for now.

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

I worked with Buckingham Investments. They broke the numbers down and assisted with the search and purchase. Everything I needed.