Brooklyn, NY Buy and Hold

[Morris Cohen]

Investment Info:

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

Purchase price: $925,000
Cash invested: $92,500

This deal solidifies for me for everyone to purchase their first property as soon as possible. This was my first deal. I didn't have the funds for the down payment, so I asked my brother in law to go in with me 50/50. Six years later it just appraised for $1,700,000 and has been providing me with stable monthly cash close ever since we purchased it.

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

I wanted to buy something close to home so I can begin learning how to become a landlord. Buying a three family seemed like the perfect way to start.

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

We found the deal on Zillow. The deal was sitting for a while and just had a price drop. We were bidding against another buyer who actually offered more than we did, but they wanted the building delivered vacant, which wasn't possible.

How did you finance this deal?

An 80/10 loan.

How did you add value to the deal?

In the beginning we didn't have the funds to add value. We let the tenants stay and once the leases ran out we updated the units and raised the rents, which provided stronger cash flow.

What was the outcome?

I still own it and don't plan on selling it any time soon. It provides strong monthly cash flow and is appreciating in value.

Lessons learned? Challenges?

Take action early! Looking back I am so happy I purchased this so early on in my career.