Sold our 4 plex in 2020

[David Moore]

Investment Info:

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

Purchase price: $295,000
Cash invested: $85,000
Sale price: $454,900

rehabbed all four units, added vinyl windows....$30K invested in early 2017.

Sold right at start of pandemic

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

I always wanted to own a four plex

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

I sent out mailers and got a couple hits back...this one from a seller who wanted out

How did you finance this deal?

A local bank that specializes in real estate loans

How did you add value to the deal?

We upgraded all the units bathrooms, windows, painted exterior, new laundry...really worked hard to make nice for tenants. Fresh pain, countertops and carpeting, and laminate in all four apartments as well. Upgraded electric to panel from fuses.

What was the outcome?

We made very little month to month....tenant class was more difficult to manage. Property Management companies were useless.
We made a bundle on the sale, though.

Lessons learned? Challenges?

Don't buy properties too close to where I live...drove myself nuts trying to keep tenants in line