Updated almost 2 years ago on .
1st Small Multifamily purchase
Investment Info:
Small multi-family (2-4 units) buy & hold investment.
Purchase price: $645,000
Cash invested: $175,000
Spend a bit over a year searching and came across this property. Did some minor aesthetic improvements on all 3 units and living in one while looking to rent out the rest.
What made you interested in investing in this type of deal?
From all of the information my wife and I have gathered thus far plus our long term plan to purchase # of properties and then pay them all off, we felt this was the easiest barrier of entry.
How did you find this deal and how did you negotiate it?
We saw it on the market, but priced quite high initially. It went under contract and fell out a few times. That is when we came in to put in an offer with the condition of seller credit since most of the CapEx items were old and units needed work.
How did you finance this deal?
Found a lender through the local community and leveraged one of their more unique products.
How did you add value to the deal?
We installed LVP throughout the unit, added in unit washer/dryer for each units, completely redid the kitchen, and minor cleanups to the bathroom.
Lessons learned? Challenges?
With some of the CapEx issues/concerns that came up during the inspection/prep work for construction, we delayed some of the work when we should have just addressed them all ahead of time.