Multi Family buy and Hold

[Shane Dolinski]

Investment Info:

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

Purchase price: $505,000
Cash invested: $110,000

Bought this 4 plex with investor partners. Rents were way below market. We gave a 60 day notice and raised all the rents to market value, immediately increasing property's value, cash flow, cap rate. etc. We will continue to add value as tenants move out and remodel.

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

I wanted to diversify from Airbnb's and Single family homes. This area is good, close to my own residence, and looks great.

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

I set up a search for MF units available in my desired area. This one came up and I quickly reached out to the realtor ( a colleague) and negotiated a good deal for myself

How did you finance this deal?

20% down, conventional lending through Chase Bank.

How did you add value to the deal?

We immediately increased rents. Remodeled one unit.

What was the outcome?

Cash flow is strong, 3% rent increase annually in the leases. Very happy with outcome so far.

Lessons learned? Challenges?

There was quite a bit of deferred maintenance in this one. We negotaited a $15 discount in lieu of repairs, but in retrospect, I should've asked for more off or them to replace parts of the roof.

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

Myself :)