My investment interests

[Kathryn MacGeraghty]

Investment Info:

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

Near my home and business, between PA and Sequim.

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

The cash flow and price range

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

I used a Realtor. The 1st 4 plex was during a low period in the market, thus a good deal. The 2nd was a 1031, so I was under pressure and bought the only 4 plex in the area. However, it was still a far better investment than duplexes or single family homes.

How did you finance this deal?

Using a mortgage broker, who found a lender that was ok with more than 4 loans. Always 25% down. 

How did you add value to the deal?

We're renovating at each turn. New flooring, paint. Several new tubs & enclosures. Landscaping. I renovate using accumulated cash flow.

What was the outcome?

With rising rents, they are very satisfactory investments.

Lessons learned? Challenges?

1031 exchange has pros and cons. Better to look for what's common in an area before pulling the trigger.