First 3 unit in Halethorpe MD

[Tony McElroy]

Investment Info:

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

Purchase price: $217,600
Cash invested: $43,520

Property is a single family home with 2 single bedroom units on the first floor and a 2 bedroom unit on the second floor. Bought the property with the two lower units occupied and kept the 15 year long renters in place. In the process of remodeling the 2 bedroom completely with a full floor plan change and a complete upgrade.

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

The strength of multi unit dwellings with cash flow and my ability to instantly renovate the largest unit to increase value.

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

Found it through searching for months with my real estate agent who is also growing in the investment world along with me. After renovating my previous house that I lived in for three years I was able to increase money to buy this unit and rehab it myself.

How did you finance this deal?

I did a typical 20% down 30 year mortgage with Scott from our local Apex Mortgage group.

How did you add value to the deal?

Currently remodel the 2 bedroom that will force equity gain and it will increase the cash flow.

What was the outcome?

In the process of renovation right now. Should be complete in 30/45 days.

Lessons learned? Challenges?

Sweat equity is challenging as i already knew, and 20% down is going to be a struggle in my plans for growth. I need to learn how to leverage money better and also need to learn more about how to grow the business.

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

Adam Foote located in Ellicott City Maryland and working with Keller Williams. I definitely recommend him. He has a lot of resources in order to get answers and he works extremely hard. He also represents you and your needs and not his own interests.