4 plex in Ivy Hill, Oakland

[Aidan W.]

Investment Info:

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

Purchase price: $860,000
Cash invested: $245,000

4 plex in Ivy Hill, have done some upgrades, need to do more: done the roof, painting, remodeling 2 of the four apartments. Next is upgrade the earthquake proofing, front entrance steps, and miscelaneous.

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

Long-term savings for myself, wife, and children

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

MLS -- searched on-and-off for 2 years for right combination of price, neighborhood, and number of vacant units.

How did you finance this deal?

Heloc against equity in our home in Rockridge for down payment.

How did you add value to the deal?

Managing turnover of units, managing contractors to paint, do roof, do other fixing, sweat equity in painting and remodeling , fixing those old metal windows!, landscaping.

What was the outcome?

Okay so far I think. Haven't lost my shirt anyway.

Lessons learned? Challenges?

Keep all your receipts, use the same credit card for all home depot purchases -- maybe for *all* purchases... Organize receipts as you go. Figure out things like, can you deduct owner-move-in payments, etc... Don't skimp on research of rents in your neighborhood. Treat people decently. Don't expect to make much money the first year -- think longer-term. Your best real estate agent is yourself, I think. Do your homework assessing the cost of your deal. The more information you have, the better.

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

JVM Mortgage lenders in Walnut Creek were very good and fast. I've found some good contractors and roofers.