Multi-family, live in, renovating

[Kesha Ferguson]

Investment Info:

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

Purchase price: $34,000
Cash invested: $90,000

4 plex with renovations in progress. Renovated and living in 1 apartment; the other 3 are in the process of being renovated to rent out.
1) 3 bed/1 bath
2) 1 bed/1 bath
3) 2 bed/1bath
4) 3 bed/2 bath
big back yard
1, one car garage
1, 2 car garage

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

It was a multifamily found on a delinquent tax list. Interested in cash flow.

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

Researching Delinquent Tax list. County has a fixed price. The property had a mortgage/lien from previous owner and we negotiated it down to approx $33k.

How did you finance this deal?

Personal savings, and lucky unexpected money from a previous job.

How did you add value to the deal?

New roof, plumbing, electrical, general updates. It has not been updated since the 1980s.

What was the outcome?

One apartment is completed and we're living in it, while renovating the other 3.

Lessons learned? Challenges?

Don't renovated based upon your living standards. Get multiple bids on big jobs (roof, plumbing, electrical) Budget.

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

Not for this deal, but for a previous flip. Anniea Stauffer with Miscovich Real Estate; she's professional, knowledgeable, dependable.