2-family buy and hold in C neighborhood of New York

[Thomas J Petracca]

Investment Info:

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

Purchase price: $64,000
Cash invested: $100,000

100 year old brick 2-1/2 story home, "railroad-flat" style, and in very poor condition. Gutted interior walls, removed bearing walls in areas to open up the design to connect the front parlor to a new kitchen in the center of the home. Did same mod to second floor.
New bathrooms each level. Refinished "attic" into an additional level for the second story apartment.

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

Cash flow calculation!

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

House was listed on "Homes.com" Originally posted at $42K. Had to resubmit my best and final offer at $64K in bidding war. Originally lost out when higher bidder could not come up with cash for building.

How did you finance this deal?

Cash on hand and equity loan on primary residence

How did you add value to the deal?

By changing the layout to an open layout it provides a startling and beautiful view that everyone who sees it.. loves it. Had MANY people coming up to us to rent it out during construction.

What was the outcome?

Still chugging along...

Lessons learned? Challenges?

Probably used too high quality of finishes... could have saved 10K easily.

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

No.