Triplex property - new in operation

[Francois Frigon]

Investment Info:

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

Purchase price: $350,000
Cash invested: $100,000

This is a new construction triplex started in 2017 and now completed since summer 2019.
Now in full operation with all 3 units rented.
Great value appreciation and excellent monthly cash-flow

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

Potential return on new multi-family properties

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

Found a broker which offers new MF construction deals in the San Antonio area.

How did you finance this deal?

Used personal cash on-hand. We also bought this property through our LLC

How did you add value to the deal?

Contract was fix price at $317k for new construction.
We invested an additional $40k to finish the project.
The property is now evaluated at $440k (so good equity gain)

What was the outcome?

Took over 2 years to built (very hard on us).
However, with perseverance we now operate this new Triplex and monthly return so far are excellent.

Lessons learned? Challenges?

On new construction (if you're the owner), be aware of all the inspection checks done by the city.
Go see progress weekly and don't hesitate to ask updates from the builder regularly
Establish a good partnership with your bank partner... keep them updated
Don't under-estimate the time to pass inspection on the Fire Suppression system, and the final

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

My RE broker is Jimmy Palacio - great guy and keeps me updated on new projects in the area

[Tommy McCoy]

This is awesome, thank you so much for providing your experience with this construction triplex. I am a teacher and I just moved to San Antonio, any advice for a first time investor?