First Multi-Family Investment

[Dave Grimson]

Investment Info:

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

Purchase price: $117,000
Cash invested: $15,000

First multi-family investment. 2 family home

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

Foreclosure sale, needed a lot of work, like the area, good cash flow

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

REO, online auction

How did you finance this deal?

conventional 30 yr loan along with some of my own cash and private loans from friends/family

How did you add value to the deal?

updated both kitchens, 2 bathrooms, flooring, paint,

What was the outcome?

cash flowing almost $600 a month!!

Lessons learned? Challenges?

Should have refinanced sooner and I should have got a plumber in there as soon as I bought it. I ended up having to open up walls to get access to plumbing after we had painted

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

No, I hold my RE license

[Dave Grimson]

@Erica Osborn This was my first refinance on a rental property.  I have a Broker who is a friend and takes care of all my needs - his only advice is to wait for more than 3 months before refinancing.  

I could have refi'd sooner but wasnt really critical in the numbers, only would have taken this property off the to-do list sooner.  I got some of my money back but not all of it.  I put in close to 20K of my own money into this and about 12K is still in the property.  Not a terrible amount but i'm sure some experienced investors would not let that fly!

Hope that helps! sorry for the late reply, I think I missed this when it came in originally