First out of state buy and hold

[Garrett McIntyre]

Investment Info:

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

Purchase price: $315,000
Cash invested: $79,000

Read the BiggerPockets out of state investing book. I could not find any deals in my local market in California. Decided to take action and build a team in St. Louis where I had some boots on the ground. Found an almost turnkey 4 plex on market that would cash flow when we got the rents up. To date we have gotten the rents to market and are cash flowing $100-150 per door! Thank you BP for some inspiration.

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

Listing to BP podcast and educating myself through books!

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

On market for less then a day. It was in a good area and that’s what I cared about most initially.

How did you finance this deal?

Conventional 30 year fixed @ 80%LTV.

How did you add value to the deal?

Bought it below market with below market rents. Rents were brought up to market with no vacancies so far!

What was the outcome?

It is a solid cash flowing asset so far!

Lessons learned? Challenges?

I learned that you have to ready to write and offer quick in this hot market. That means have an agent ready, finance approved, and some what know the area you are investing in. I think if I could do it again I would try and find a deal that I could Brrrr. I lost a big chunk of capital quickly. In the future I will try and find more value add possibly using the Brrrr method. But like they say the first deal doesn’t always need to be the best deal. I learned many valuable lessons along the way!