4plex in West Anchorage

[Dave Velasquez]

Investment Info:

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

Purchase price: $450,000
Cash invested: $30,000

a noncontiguous 4 unit comprised of a single family house, s duplex, and a small one bedroom house in west anchorage

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

multifamily has great fundamentals and I have always liked this food group

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

I purchased this from an ex girlfriend who I had helped find and purchase the property originally. She wanted to move to California so I made her a good offer on the property, we came to terms, and off she went.

How did you finance this deal?

This was creative. we left the current loan in place and the seller owner financed the property to us. we basically assumed the mortgage without telling the bank. It was a risky move in a legal gray area but thats where the deal led us and we followed along. after 3 years we refinanced the whole deal into a conventional loan.

How did you add value to the deal?

Remodeled the house. the downstiars unit of the duplex was a 1500 sqft one bedroom. We turned it into a 3 bedroom and move the kitchen to the front of the building. The one bed house was a mess, so we cleaned that up and turned it into an airbnb unit that has been profomring really well for the last 5 years. This was a fun deal that I would do again.

What was the outcome?

Its our best preforming property. this one does really well and were super stoked with how it turned out. It will need a new roof in the next few years so were saving for that.

Lessons learned? Challenges?

be open to creative financing and understand what is important/valuable to the other side. maybe they just wanna move. I gave the seller 20k cash to help with moving costs and we took it off the sale price. that made all the difference. understand what is possible. this one had 2 extra bedrooms and an airbnb hidden in it. we had to be able to see that value and make the deal factoring in those pieces of value.

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

Figure 9 Real Estate