2 Places in one month

[Kat Hughes]

Investment Info:

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

Purchase price: $139,000
Cash invested: $34,000

Beautiful large multi family Farm house. This four unit home welcomes families and individuals to a 3bedroom 1 bath, two 1 bedroom 1 bath and a studio apartment with a full bathroom. Placed on a roughly two acre lot on the corner of Peachy and North Lake Rd, the home offers great views of the nature around. In just 10-15 minutes you can be in the heart of Brockport for a run/walk down the canal or to grab a bite at some of the restaraunts in town.

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

We started with one multi family in LA and just really like multi's. This place was very easy... already had tenants in place that were all happy. The property was well maintained...nothing much had to be done at all. There was one unit empty and all we had to do was clean it because everything else was already rent ready. We bought another multi, more towards Rochester and this at the same month.

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

Our realtor found it for us.

How did you finance this deal?

Conventional loan through MB financial bank. We put 25% down.

How did you add value to the deal?

Literally nothing much had to be done to this. It was a great find... the rental income was lower than what we would want but because there was no improvement that had to be made, we were ok with the rental income being low.

What was the outcome?

Great! Two units still has the same tenants since 2015. One of the units now has a tenant that has expressed their desire to stay long term. The larger unit (3 bed) has more of a quick turnover. We've almost have a new tenant every year for that unit.

Lessons learned? Challenges?

We were so new to investing back then (2015). Hadn't read anything, didn't really study much. Everything we did was lead by our gut instinct. Not a good way to make decisions and now we know better. This property uses oil to heat the home. This is our biggest expense that averaged $350/month (the highest we've had) all of last year because oil prices went up. Because of that, cash flow lowered significantly. We learned now to really carefully look at utilities before buying a property.

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

yes! tom hart from mb financial and Pete Zizzi from relax