4 plex/ buy and hold

[Jenny Perron]

Investment Info:

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

Purchase price: $390,000
Cash invested: $120,000

I purchased a four-plex for $390,000 where each unit was originally rented at $400 per month on a month-to-month basis. Upon acquiring the property, I notified the tenants that they had 150 days to transition to paying $900 per month. One tenant decided to move out, giving me the opportunity to renovate that entire unit for $15,000, which included furnishing it. I transformed this unit into an Airbnb, and it now generates over $2,000 per month. This is particularly impressive given that it’s located in a very small town with only two stoplights. When people express concerns about starting an Airbnb in smaller markets, it genuinely amuses me, as this experience has proven that success is not limited by location.

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

Seller was easy to deal with, tenants were month to month, and the college was within walking distance

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

I cold called the seller and asked

How did you finance this deal?

Pulled equity out of my home

How did you add value to the deal?

Raised the rents, and added one unit as a airbnb

What was the outcome?

income is now 4,500 it was 1200 when I purchased it

Lessons learned? Challenges?

It was a lot more money then expected in the fix-up of the Airbnb

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

I am a Broker