8th Investment Property

[Anne Keenan]

Investment Info:

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

Purchase price: $385,000
Cash invested: $115,000

2 duplexes on one lot. 2 BR/ 1.5 bath units. built 1989. Stucco outside only 6 years old. Roof 3 years old. Windows shot- White couldn't see out them. Great desirable location.

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

Did a 1031 and need a property fast. This fit the bill. See 7th property for more info. Bought together.

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

Drove by it a lot and called the seller.

How did you finance this deal?

Conventional bank financing 1031 tax deferred exchange.

How did you add value to the deal?

Took out the half baths and added laundry. Tenants all stayed even though I shifted W/S to then and raised rents $200. Really hated lugging their laundry half an acre to a coin op laundry in another building. Changed out the windows. Didn't replace them just the panes. IT A LOT CHEAPER. $40K to replace. $9K to just do the panes. Put in Low E-glass Thermal panes. Tenants utilities a lot lower. Added solar screens and outdoor patios and all the safety items mentioned in deal 7.

What was the outcome?

Better quality tenants when you have laundry in the unit. They also stay longer. Rents have nearly tripled since 2018.

Lessons learned? Challenges?

Covid messed up obtaining need materials for renovations- Like Tubs! Keeping relationship with tenants is key. They all paid thru Covid- Early even.

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

Yes myself. Licensed since agent was not reliable.