Value Add 4 plex in small MN mining town

[Naomi Hanson]

Investment Info:

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

Purchase price: $85,000
Cash invested: $7,000

4 plex value add purchased with 1031 money. Slowly upgrading all units this past year. Increasing rents and passing electric to tenants.

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

Larger multi-family with newer heating/plumbing/electric. Steam conversion already finished.

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

Through an agent in Virginia, MN

How did you finance this deal?

1031 exchange

How did you add value to the deal?

Upgraded bathrooms and kitchens; painted; carpeting/flooring

What was the outcome?

Working on getting new tenant in the most recently updated unit. Increased rents and pushed electric costs. Charging for garage space. Likely to add coin operated W/D in basement in the future.

Lessons learned? Challenges?

Finding a Property Manger for the area! Very mixed feelings about current PM, but can't seem to find another! Another challenge area is finding quality tenants, in particular during the winter months. Longer time to lease up.