Multi family rental

[Derek Pulcini]

Investment Info:

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

3 unit rental consisting of a 1,2, and 3 bedroom apartment.

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

I like the idea of multi family properties. I essentially got 3 doors for the price of 1. Motivated sellers were willing to let the property go below market value. All major systems including electrical, HVAC, and some plumbing updated within the last 5 years. The roof was also replaced in 2012. The property appraised for 60k over the purchase price. Some cosmetic updates are needed to add additional equity.

How did you finance this deal?

Conventional financing

How did you add value to the deal?

-Freshly repainted the entire interior of all units
- completed a light kitchen/ bath remodel in the 2 bedroom unit.
- in the process of adding a bathroom and doing a light kitchen remodel in the 3 bedroom.

What was the outcome?

After owning the property for a week I was able to find a qualified tenant and rent the 1 bedroom unit. The rental income from this particular unit covers about 70% of my monthly expenses. I have a qualified tenant moving into the 2 bedroom 5/1/2019. The 3 bedroom is currently being renovated and has the potential to bring approximately $1000 per month in rent.