4plex in south Anchorage

[Dave Velasquez]

Investment Info:

Large multi-family (5+ units) buy & hold investment.

Purchase price: $425,000
Cash invested: $14,500

bootleg 5 unit purchased as a 4 unit with a lot of cap ex needed.

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

we really like multifamily

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

I found this thru an agent off the MLS

How did you finance this deal?

This was an FHA Deal

How did you add value to the deal?

We had main riser leaks due to old copper pipes that had corrosion and were springing pinhole leaks likley due to disimalr metals being used in the system creating "galvanic corrosion". it was a big job but we did it all ourselves. went ahead and replaced the main hot and cold risers from the boiler room to the third floor. We also added washer and dryer to one unit that didnt have it on the top floor and created more parking by adjusting landscaping and extending the driveway.

What was the outcome?

We were able to move rents to market rate and get rid of a lot of the problem tenants. the building has made a lot of money for us since we were able to get 5 units for the price of 4.

Lessons learned? Challenges?

We don't love the flat roof on this one. We would avoid flat roofs in the future. Second, understanding the scope of a project going into it is important, we didn't really know how much work it would be to correct the plumbing issue. ultimately it made sense and the building is doing well but we bit off a lot more then we had intended to chew during that part.

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

Figure 9 Real Estate