Sunset college rental

[Emillio Henry]

Investment Info:

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

Purchase price: $350,000
Cash invested: $100,000

Buy and hold of a multi family college rental house. Off market deal found by letter writing.

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

Potential for higher than average rental income. Proximity to multiple universities

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

Off market driving for dollars. Sent the homeowner a letter and spoke over the phone for the roughly 4 months and come to a fair price that worked for both of us.

How did you finance this deal?

Commercial lending through my mortgage broker.

How did you add value to the deal?

Sweat equity! Converted an extra living space into a bedroom and added a sprinkler system to legalize the 3rd floor.

What was the outcome?

Fully rented after renovation.

Lessons learned? Challenges?

My only regret is not waiting a little while longer before jumping in to my next fix and flip because I wasn't able to successfully BRRRR the property and pull out my equity with my current debt to income.

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

I worked with a mortgage broker only.