Tri-Plex Diamond in the rough

[Jeff Boyle]

Investment Info:

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

Purchase price: $224,000
Cash invested: $45,000

We purchased this Tri-plex with one tenant renting 2 units for the price of one. The exterior needs some work but it has a new roof and the interior's do not need much at all.

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

Simply adjusting the rent when her lease is up or renting out the 3rd unit to a separate tenant will drastically increase our cashflow. With one small adjustment our cashflow will go from $486 a month to $1308 per month. That will happen in November of 2023.

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

It was an off market deal. He gave me the price that he wanted I quickly ran the numbers and I was good with it.

How did you finance this deal?

Conventional 20 year fixed.

How did you add value to the deal?

Renting out the 3rd unit to another tenant and there is a 2 car detached garage that we can rent out for storage.

What was the outcome?

We just purchased it last week.

Lessons learned? Challenges?

Ask everyone you know if they have any properties that they want to sell.

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

I am a realtor myself. I did take a commission on this deal on the buy side.