multifamily portfolio is growing

[Michael Higgins]

Investment Info:

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

Purchase price: $235,000

Duplex with each unit being 2 bed and 2 Bath.

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

Multifamily located in my targeted city that met my buy box criteria. This property required a new roof and some basic renovations. Able to keep the tenants and increase rent by 50%.

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

I have a great agent who found this 1 week before going on MLS. Reduced asking price by $13k to cover the roof.

How did you finance this deal?

Pulled down-payment from. HELOC and the rest traditional financing.

How did you add value to the deal?

New roof and basic upgrades to kitchens kept the existing tenants. Raised rents by 50%.

What was the outcome?

Despite higher interest rates for the mortgage (7.625%) and the HELOC (9.5%), we are still positive cash flow.

Lessons learned? Challenges?

More lessons around financing. Don't be afraid of higher rates, it is just one variable.