3 family house

[Christopher Pray]

Investment Info:

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

Purchase price: $50,000
Sale price: $120,000

3 family house built in late 1800's. Renovated a couple apartments and made some other improvements to the building

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

Cheap and good cash flow

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

MLS. Watched it list for $90k, then price reduction to $70k. Made $30k cash offer. Seller counter offered at $50k and I accepted.

How did you finance this deal?

Conventional

How did you add value to the deal?

Renovated a couple apartments and made some other improvements to the building. Raised rents.

What was the outcome?

Sold it

Lessons learned? Challenges?

Unexpected costs, renovation delays, series of poor quality tenants. Eventually I stabilized it with good tenants.