Long term hold

[Jonathon Morris]

Investment Info:

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

Purchase price: $220,000
Cash invested: $50,000

Duplex with large basement unit

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

Mis managed by previous owners
Lots of rehab work required
Saw that I could live in one unit essentially rent free

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

MLS
As-Is

How did you finance this deal?

Conventional loan
5%/30year

How did you add value to the deal?

Did all work myself to learn how a house works.

Paint exterior peeling paint
Removed junk throughout finished basement. Turned into studio. Renovated via, paint, lighting, bathroom updates.
Raised rents.
Lowered expenses implementing rubs

What was the outcome?

Gross rent multiplier =22%

Lessons learned? Challenges?

Get property at a steeper discount
Learn more about contracts
Interview buyers agents better
Treat tenants fairly but firmly.
Set expectations up front and keep them accountable throughout.