Bryan/College Station 4-Plex

[Pete Harper]

Investment Info:

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

Purchase price: $255,000
Cash invested: $255,000

4-Plex in Bryan/College Station Texas. Units are 2BR/1BA

Original asking price was $285,000. During inspection we found issues with the foundation and were able to renegotiate the price at $255,000. After closing we were able to repair the foundation for $12,600; $17,400 net savings. We have put another $2000 into paint and upgrades. Painted existing kitchen cabinets, over range microwave and granit counter tops in one unit.

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

Terrific location! Walking distance to shopping, restaurants and Highway.

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

Zillow search engine. Agent Johnny Horton.

How did you finance this deal?

All cash from 1031 exchange.

How did you add value to the deal?

During inspection we found issues with foundation. We used this to negotiate $30,000 price reduction. After closing we completed foundation repairs for $12,600. We put another $2000 in paint and upgrades on the two vacant units. Painted existing kitchen cabinets, over oven microwaves, new light fixtures and new granit counter tops in one unit.

What was the outcome?

Our strategy is long term buy and hold for cash flow. We plan on pulling equity out in 2020 to BRRRR future strategy.

Lessons learned? Challenges?

We learned to use inspection report to negotiate significant price reduction.

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

Johnny Horton is the best. We have done two deals with him this year. Hope to do more in 2020.