Buy and Hold Real Estate Pays Off Over the Long Term

[Jennifer Reinhardt]

Investment Info:

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

Purchase price: $489,000
Cash invested: $100,000

Quadplex, purchased in 2016. Updated and held. Value has more than doubled to over a million dollars with holding and updating the property.

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

I like that the area was being invested in, you can walk to the bars and restaurants in downtown Castle Rock. I like that you can live in one unit while renting the others. Being a multi-family deal, it was like buying 4 homes for the price of one.

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

I found it through my real estate team. We find off market deals. Please contact me at www.realestateambitions.com if you are interested in off market deals.

How did you finance this deal?

Conventional

How did you add value to the deal?

The apartments were rented at the beginning, and over time the rents were raised. The units were original, so they needed new cabinets, bathrooms, flooring, paint, everything. We also added exterior work including windows, and systems repairs. It is important to keep the property nice to match the comps in the neighborhood, so it was fixed up.

What was the outcome?

The value of the building more than doubled over 7 years. We are not selling it, because it will keep increasing. I love the area.

Lessons learned? Challenges?

Multi-family real estate takes cash reserves, and is a long term play. It is super important to do inspections and get the negotiations correct so that the numbers work.

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

I am a real estate broker and find off market deals.

My team manages over 9,000 rentals so we have access to property management and vendors, as well as off market deals.