4th investment property I bought.

[Anne Keenan]

Investment Info:

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

Purchase price: $215,000
Cash invested: $18,000
Sale price: $500,000

5 unit never been on the market. Bought from the Grandson of the man who built it in 1930. Top floor not rentable due to second egress needed but not cost effective to put in.

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

He came to me and offered me owner financing. He had just inherited it a year ago and didn't like being a landlord.

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

Owner approached me. I was going to Essex Rental to rent equipment to teach myself how to do renovations- I had no money to hire anyone. after 10 months of lessons from the guys there I developed relationships with them. He wanted me to have his families property.

How did you finance this deal?

Owner financing.

How did you add value to the deal?

I turned the 3rd floor into one unit making the stair issue a non concern and creating a 4 BR 2 Bath unit that had high rent. Improved all the units. They were separately metered. Vinyl sided the outside. I want maintenance free siding. Put new baths in, new windows, weatherized it. Low utilities means tenants will stay.

What was the outcome?

Rents increase. Sold it 7 years later for $500K

Lessons learned? Challenges?

Lead Paint! Encase it or remove it wood and all. This property had massive lead paint on the exterior siding. I encased it in vinyl siding to make it safe. Replaced the wood casement windows with vinyl clad, thermal pane, low-e glass windows which eliminated alot of the lead risk.

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

myself. I would recommend today Brian Armstrong Keller Williams S Burlington Vt.