out of state investing done the right way

[Dolf Al Emara]

Investment Info:

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

Purchase price: $410,000

I bought this property during COVID-19 when everyone was running away from buying rental units.

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

I wanted to try out-of-state investing.
Here is how it started. I was eager to invest in Idaho, primarily near Boisy. I went into escrow for a 4-unit building, but the seller backed out on me 3 days before closing escrow. I sent him a letter from my lawyer to honor his part of the deal. He refused to sell me. He said that he thought renters would not pay rent during COVID-19 and was wrong. I didn't want to go to court for obvious reasons, so I took a $40k damages check and bought this deal.

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

word of mouth
I did not negotiate price that much since I knew it was a solid deal for the price and condition of the building.

How did you finance this deal?

traditional loan financing

How did you add value to the deal?

increasing rents every year, fixing up the units

What was the outcome?

Value increased from $410k to $760K over 4 years period. I have invested $0 since I cashed out 2 times.

Lessons learned? Challenges?

Find ways to increase income periodically to get the most out

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

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