1 to 7 with 1031 exchange

[Joy Hagerty]

Investment Info:

Large multi-family (5+ units) buy & hold investment.

Purchase price: $630,000
Cash invested: $30,000

I was selling another property and used the 1031 exchange fund to put down the downpayment for this property, and it was cash-flowing from day one. rent is still growing, but I have a great tenant base and we are looking for stable tenants. so $8000 a month is a little under that market. but if anyone is looking to make changes and raise rent, they have room for that

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

the location was great, condition was good and numbers worked close to 1%, and I needed to find a place for 1031 exchange

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

the listing price was $650,000. we made a full price offer but asked for repair allowance of $35,000 and closed it at $615,000 for 7 unit rental. my realtor did not want to negotiate for me, and I had to persuade my realtor

How did you finance this deal?

1031 exchange from sale of another property

How did you add value to the deal?

we have changed out the carpet and paint as the tenant moved out, replaced the roof, and built a fence in the back

What was the outcome?

it is worth 1.3- 1.5 million now and the cash flow per month is $8000

Lessons learned? Challenges?

frustrated with non-investor-friendly realtor. helped me to decide to become a realtor

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

i recommend myself:) as i work with Investors