Fourplex in Kennewick Found With Letter Writing Campaign

[Deepak Malhotra]

Investment Info:

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

Purchase price: $180,000
Cash invested: $40,000
Sale price: $218,350

Fourplex in Kennewick. Located after a letter writing campaign and purchased directly from the seller without a real estate agent. Seller used one of the units for storage. I turned it back into a residential rental unit.

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

A nearby city with a lot of highly paid engineers. The rent versus price seemed good. An agent sent me a video tape of a fourplex in this area that made it seem pretty good. The area had appreciated substantially in a short amount of time. I wrote letters to owners and found someone willing to make me a great deal.

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

I wrote letters to owners and found someone willing to make me a great deal. Negotiated over the phone and I sent an offer using my own form.

How did you finance this deal?

Commercial.

How did you add value to the deal?

One of the units was being used as storage. I installed cabinets, painted it, and made it back into a residential rental unit.

What was the outcome?

Sold at a profit.

Lessons learned? Challenges?

Shared laundry meant a fifth utility meter and high water costs that I paid. Collecting quarters wasn't worth it. Decided I never wanted a shared laundry again.

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

Wheatland Bank was good to me but the lender I worked with has since retired. Bought by letter writing campaign. www.buygeg.com