4-plex in Fairfield, TX

[Pete Harper]

Investment Info:

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

Purchase price: $135,000
Cash invested: $135,000

4-Plex in Rural Fairfield, TX. Units are all 4BR/1BA

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

We have been looking for investments closer to home. All our other properties are 2hrs+ drive. This makes them inconvenient for self management.

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

I have Zillow searches running in multiple target markets. This property showed up on one of my searches. We waisted no time in lining up a local agent for a showing. The property is in pretty rough shape. Original owner passed away and a family member has been managing it for his children. Negotiations took a very long time. The family are out of time and communication was painful. The two heirs were not on speaking terms so their mother needed intervene.

How did you finance this deal?

All cash deal. Our plan is to BRRRR this property.

How did you add value to the deal?

Property is in rough shape with a lot of deferred maintenance. First up is a new roof and rain gutters. In the two vacant units we will take the kitchen and living down to bare studs replacing all the old dated panelling. new kitchen cabinets, over range microwave, dishwasher, ceramic tile, fresh paint and lighting.

What was the outcome?

Work in progress.

Lessons learned? Challenges?

Patience. The negotiation took over three months. We stuck to our price and were able to get a $20,000 reduction.

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

Angela Kennedy