First 4 Plex investment!

[Jacob Stollenwerk]

Investment Info:

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

Purchase price: $141,000
Cash invested: $33,000

This property is a 4 unit apartment that is fully occupied. Total monthly rent is $2,200/month. Mortgage(escrow) $820/month. Maintenance/reserves ~ $470/month. 3 - 1bed 1bath units and 1- 2bed 1bath unit.

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

I am looking for cash flow and I have been wanting to find 4 unit apartments because I think the cashflow tends to be better. I have also been looking into the Racine and Kenosha, WI area due to the fact that FoxConn is moving into the area and is expecting to bring a lot of business.

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

I found this deal with a real estate agent.

How did you finance this deal?

I used a HELOC from a lake house rental I have fixed up over the last 4 years and have gained a decent amount of equity. That lake house is also up for sale at this time in the Appleton, WI area.

How did you add value to the deal?

I will be adding value by rehabbing/updating the units as tenants move out. I will also be providing appliances. The rents are also significantly under comparable rents in the area and I will be increasing rents as I finish the units.

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

I worked with Gina Dingman who is an agent from Realty Executives. She is great and I highly recommend her.