4-unit fix & hold

[Michael Liggett]

Investment Info:

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

Purchase price: $200,000
Cash invested: $82,000

4-unit brick building. Each unit is 1/1 with two units on the ground level, and two units on the second story. Located on a small lot in a quickly appreciating neighborhood.

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

Great multi-unit property in an area experiencing rapid appreciation. With the goal of being a fix & hold, being 4-units opened up the opportunity to refinance post-renovation into a DSCR mortgage. The property itself is close to highway access, hospitals, and public transportation.

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

This property was an off-market deal that came through my sphere of influence. I did a general assessment of the property and negotiated with the sellers to land on an agreeable sale price.

How did you finance this deal?

This initial purchase was done via a hard money loan with a construction escrow. Following the completion of renovation and renting all the units, the property was refinanced into a long-term DSCR mortgage.

How did you add value to the deal?

Each unit received a full cosmetic update - new floors, cabinets, vanities, lighting, etc. Improvements to some mechanicals were also made.

What was the outcome?

While not a "perfect" BRRRR we were able achieve a solid refinance with a tolerable amount of money left in the deal.

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

I served as my own agent and have extensive experience in the multi-family sales space.

[Michael Liggett]

It's in the near east side of Columbus in the King-Lincoln/Bronzeville neighborhood; rents are $895/mo