2023 Investment #1

[Robert Vigil]

Investment Info:

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

Purchase price: $90,000
Cash invested: $28,000

Found an off market deal with a tired landlord. Spent an extra $5000 to make the apartment really nice and then rented it out.

June 2023 - Learned the struggle of small towns and multi-units. We applied for a variance to change zoning from a 2 family to a 3 family. We were told we were not allowed to put in the parking spaces necessary. Truth is, they were not interested in having it changed. Unfortunately, the small town has many homes that are abandoned and no longer being rented out and the town seems to like it that way.

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

The deal made sense with the numbers I was running.

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

Found this on FaceBook Marketplace...negotiated with the owner.

How did you finance this deal?

Re-financed our personal residence for the down payment and conventional loan for the rest.

How did you add value to the deal?

Remodeled half of the unit and am working on finishing the basement.

What was the outcome?

TBD

Lessons learned? Challenges?

Had to fill the vacancy for the first time. Minimum rental requirements weed out not great tenants.

We had to be firm, but fair to inherited tenant who was always late with rent.