Multifamily Purchase #2

[Emily Shay]

Investment Info:

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

Purchase price: $348,000
Cash invested: $86,000

4/2, 2/1 duplex in B+/A neighbourhood. Purchased vacant. Light rehab needed ($12,260). Pending tenant placement (Projected rents: ~3000-3200/mo total).

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

The property is in a good area and all major CapEx items were already taken care of. The fact that it was already vacant meant it would be easy to get any interior renos done quickly.

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

I found this property was on the MLS and I used an agent.

Lessons learned? Challenges?

Lessons/challenge: Consider carrying costs ON TOP OF rehab costs. Not all properties will get rented right away.
Lesson: a reliable handyman/contractor is KEY!
Lesson: if anyone of your boots on the ground team is a poor communicator, strongly consider cutting them (or at least benching them for that project).