1st multi unit rental

[Keri Aiken]

Investment Info:

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

Purchase price: $68,000
Cash invested: $5,000
Sale price: $99,000

4 Unit quad in Medina NY
Renters were tough and management company's locations are too far for a regular check up.
Had a renter pass away and then DCS came in and the house was condemned due to farm animals in the upstairs unit where the person passed.
We were too far to keep tabs on this investment so we sold the home.

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

We had a local investor that lead us to this deal it was turn key 4 unit for 68k.

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

The local investor knew of this deal through the bank as it was a foreclosure.

How did you finance this deal?

We had 20k to put down in cash and we did a mortgage for an investment property.

How did you add value to the deal?

We allowed the place to do needed repairs-water line running under state route 31 was a big project.
We also held the property for more than 10 years allowing the value to rise.

What was the outcome?

We sold the units for more than we paid years after we made the purchase.

Lessons learned? Challenges?

Management company is crucial they must be willing, close enough to see it and honest.