My first 4-plex buy and hold!

[Boone Tyson]

Investment Info:

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

Purchase price: $190,000
Cash invested: $15,000

Value add 4-plex. Brought to me by a fellow BP member who wholesaled it to me and a business partner.

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

I live about 5 minutes away and it was the ugly duckling in a really nice multi-family community. The price point was very good and I knew we could handle the work pretty easily.

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

It was brought to me by a BP member who assigned it to us. We didn't do much negotiating. We basically offered a specific number and then stuck to it.

How did you finance this deal?

I didn't have the funds to do the deal in the 2 weeks that were left on the assignment contract, and knew financing was not an option that quickly. I called a friend and investor who I knew would be interested in the deal and he agreed to partner on it, pay for the purchase, and then we would split what would be left in the deal after a cash out refinance.

How did you add value to the deal?

We remodeled the 2 vacant units, and about 2 months after closing, another tenant we inherited basically left overnight. We remodeled that unit as well, cleaned up the exterior, fixed the roof, replaced a couple AC units, brought in new appliances, and rented all units out.

What was the outcome?

We just celebrated our first month of full occupancy and it has been great so far. Refinancing as soon as possible

Lessons learned? Challenges?

Partnerships can be great.
Strong deals will find money. Make it happen.