Idaho Falls ID 4-Plex Purchase & Sale

[Ashley Byington]

Investment Info:

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

Purchase price: $229,000
Cash invested: $18,000
Sale price: $325,000

Multifamily (4 units) property in Idaho Falls ID. Rents are now $625/unit for about $250/unit/month in cash flow. We put down about $17000 and wrapped our closing costs into the loan. We've done a ton of work to improve the building, including a new metal roof, a full remodel in 1 unit, upgrading appliances, repainting the exterior, etc. Close date 2/3/2020 for $325000.

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

Income from all 4 units would provide more security if I ever had vacancies. I planned to hold this property for a long time because there was about $1000 cash flow each month.

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

I reached out to an investor in the area and asked if he knew of any deals. He had one he was looking to sell so it worked out well. I've found that networking on social media has helped me find off-market properties, as well as Buyers & Sellers who I wouldn't normally talk to.

How did you finance this deal?

FHA loan with 3.5% down, we didn't have a home at the time and were able to buy it as an owner-occupied property.

How did you add value to the deal?

Remodeling units, new roof, painted exterior, updated much of the plumbing & electrical, etc.

What was the outcome?

Safer & nicer home for the tenants. An increase in the property value of 30% over a 2 year period.

Lessons learned? Challenges?

I don't think old buildings or C/D class properties are my cup of tea! Going forward I plan to purchase newer properties; specifically townhomes. I'm looking for properties that have an HOA so that I can be "hands-off" with the landscaping & snow removal.

The property was built in the 1970s and had deferred maintenance that needed to be addressed. I was out of my depth at the beginning but much more comfortable now.

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

As a real estate agent I represented my husband and myself for both the purchase and sale of this property. I've made many connections with contractors and have a reliable network in place now.