First multi-family purchase

[Steven Lewis]

Investment Info:

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

Purchase price: $420,000
Cash invested: $420,000

Purchased my first multi-family investment property. Sold my investment condo a few months back and used the funds to purchase this new property all cash. I am debating whether to do delayed financing on this and pull the money out, or leave the money in the property?

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

Multi-family in the area has great rent, high occupancy, and future potential for great appreciation.

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

It was on the MLS and I came in all cash so I got it below list price.

How did you finance this deal?

All cash. I am debating whether to do delayed financing on this and pull the money out, or leave the money in the property?

How did you add value to the deal?

Kept 2 out of the 3 tenants and made minor improvements in the units. Replaced the toilet and shower heads with low flow to save and conserve water. I also plan to finish the basement and add coin-operated laundry in the basement for all 3 tenants to use. I also installed security cameras throughout the home.

What was the outcome?

2 out of the 3 tenants are very happy.

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

I am a Realtor.