Second small multi-family

[Robert Woodyard]

Investment Info:

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

Purchase price: $153,000
Cash invested: $40,000

Recently updated duplex with tenants in place. Listed at $160k, purchased at $153k.

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

Adding cashflow through small multi-family properties. Price to rent ratios are phenomenal in this area.

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

Off market deal brought to me by my realtor. Offered $7k under asking and got it under contract.

How did you finance this deal?

Traditional financing, 25% down.

How did you add value to the deal?

Tenant occupied will work on value add as tenants leave.

What was the outcome?

Holding now for long term with $500+ monthly cash flow.

Lessons learned? Challenges?

Underwriting from the lender dug deeper on this one as this marks my 3rd active mortgage. Will likely change to DSCR for future purchased. A good problem to have.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Realtor Patrick Drury, Lender Christopher Wharton. Both easy to work with and get the job done.