Las Vegas C Neighborhood 4 Plex Apartment

[Mike G.]

Investment Info:

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

Purchase price: $290,000
Cash invested: $10,150

Bought a semi distressed 4 plex on a FHA loan in May of 2015. I house hacked it and did a BRRRR.
I bought this apartment from an out of state owner, it required light rehab which I funded with a 203k loan and moved to each unit after the rehab was complete.
I have learned much about valuation, property management, tenants, contracts, leases, market rents, etc.
Each unit is 850 a month generating $3400 a month income less debt service and property management. Looking to buy a mobile home park or multifamily next.

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

I wanted a low barrier of entry (FHA) to get into small multifamily investing and the value add to force appreciation element was also present as was the need of the out of state seller to sell.

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

Cold calling is how i found it.
Folllowing up and being in constant contact with the seller and getting quick Approval from my lender is how I got it.

How did you finance this deal?

FHA 3.5% down
203k loan for the rehab

How did you add value to the deal?

house hacking, and rehabbing the units 2 by one while working a 40 hour a week FT job

What was the outcome?

forced appreciation and many lessons in rehabbing and people management learned

Lessons learned? Challenges?

dealing with contractors and all the scams they try, how to hire for jobs and pay by the job not by the hour. You control the deal and always have checks and balances along the way.

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

No agents involved it was an off market deal