My second investment

[Patrick Davis]

Investment Info:

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

Purchase price: $45,000
Cash invested: $10,000

I stole this one. Throughout the process, I kept waiting for something to pop out as a major flaw. It was such an incredible deal. Still my best deal yet. It has more than doubled in value.

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

This one truly just needed a minor race lift. It was a steal at this price. It was the ugliest house on the street. A very simple facelift turned it around.

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

MLS

How did you finance this deal?

Conventional mortgage through Bank of America.

How did you add value to the deal?

We took down all of the outdated window coverings which resembled a funeral home. We painted, put in new flooring, painted the cabinets and switched out light fixtures.

What was the outcome?

We had this one rented within 3 weeks of closing

Lessons learned? Challenges?

I learned that you don’t look for tenants in December. My first tenant in this unit is still there. The second one was gone in 3 months.

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

I worked with Todd Danni on this one. He is the best!