4 Plex Abq NE Heights Buy and Hold

[Shane Dolinski]

Investment Info:

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

Purchase price: $450,000
Cash invested: $120,000

This 4 plex came across my desk. It was a 4 plex near my other one. It is in a desirable area. Owner wnateds an REC and offered it at 4.5% with 20% down.

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

The REC at such a good rate was very appealing to me as I have several mortgages and it is quite the pain to get another loan. The price was fair and the rents were under market.

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

It came up on a drip search and the fact that the owner WANTED an REC (for tax purposes he didn't want to take a lump sum depreciation in 1 year). We agreed to a full price, at the owner suggested, under market rate.

How did you finance this deal?

Owner financing. 10 year AMO.

How did you add value to the deal?

we remodeled 3 of the 4 units, with a 0% interest credit card we opened on this LLC. We raised the rent in each unit and turned one of them into and Airbnb to help with the large mortgage payment. Didn't cost much to furnish as it is only 900 sq/ft and we are doubling the rent in that unit, making this property cash flow nicely.

What was the outcome?

Cash flowing property, bulding equity.

Lessons learned? Challenges?

We could've negotiated this one better as it needed everything. Windows, updated kitchens/bathrooms, roof...

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

ME!