Multifamily Buy & Hold

[Lynne Hart]

Investment Info:

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

Purchase price: $104,000
Cash invested: $150,000

Short sale 4 family purchased and now updated in the historic Shaw Neighborhood. Renting at 500/unit originally, now at 800-950.

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

It was my first multifamily deal, in a great neighborhood for an even better price. Cut my teeth a little by upgrading everything, however it is a very solid cash flowing building with low maintenence now!

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

At the time I had a real estate agent friend who helped me - it was before I had my own license.

How did you finance this deal?

Conventional financing on the original purchase, and cash on the updates. Some from savings or other income, and some from income produced from the property.

How did you add value to the deal?

Upgraded practically everything: Roof, HVAC, Windows, Cosmetics, Tuckpointing

Lessons learned? Challenges?

It was a learning experience mostly because it was my first building but its been pretty smooth sailing. I learn by doing, so I have it all down pat now!

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

I'd work with ME now as an agent, and I have a great lender who I still work with since this deal, any time I do a conventional loan. I prefer as many conventional loans as possible as there is a better interest rate, and am looking into life insurance based investing....