Mystic Multifamily Unicorn

[Marie Thomas]

Investment Info:

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

Purchase price: $380,000
Cash invested: $20,000

Purchased the property off-market directly from the seller during Covid-19 pandemic after relocating home to CT from living in NYC. Unit 1- 3bd, 1 bath, Unit 2- 4bd, 2bath and ADU 2bd, 1 bath.

I am eager to grow my portfolio and continue adding properties that I can add value to. I am passionate about helping teach others, especially women, learn how to do the same!! My goal for 2025 is to purchase an out of state rental to explore new markets!

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

I watched my parents flip houses since I was little and have always been on job sites or made "pocket money" by doing chores like painting fences or washing kitchen cabinets, which I realize now my parents were putting us to work to build that sweat equity.

During the pandemic, I was living in NYC paying $2000/ rent, and decided it was time to follow in my parent's footsteps and start to build some serious wealth rather than paying someone else's mortgage.

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

My father found it just by chance and by being friendly in person. The property was empty for 2 years and the seller was retired and did not want the maintenance therefore looking to get rid of it (2-unit building in front and ADU in back).

My dad, a carpenter self-employed for 30+ years, was working on the house next door, and saw him cutting the grass one day and struck up a conversation with him, he said "Have her make me an offer".

How did you finance this deal?

FHA with 3.5% down. At the time, I was working in FinTech, making 6 figures which allowed me to qualify for $400,000 for a multifamily. I used a friend for the mortgage (who was new) which was a mistake... my financing fell through on the day of closing in July. However since I built the relationship, he allowed me on the property to fix chipped/peeling paint and waited until OCTOBER, which was when I finally got to the closing table.

How did you add value to the deal?

Sweat Equity - did all the work myself with the help of my dad, a carpenter, and uncle an electrican... which allowed me to save thousands.

What was the outcome?

Created 3 STR/MTRs which now bring in $8,000/m. The mortgage is $2,600/m @ 3.2% financing so the property cash flows at $5,400/m ... which I think is every investors dream.

Lessons learned? Challenges?

Don't take advice from people who haven't already done what you're trying to do. And try not to care about what other people think.

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

No