Cash Flowing Fourplex Glendale, AZ

[Paul Jelinek]

Investment Info:

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

Purchase price: $259,000
Cash invested: $65,000

Fourplex buy and hold. Will refi and roll profits into more units.

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

Sold a condo I had rented out for 14 years. Learned quickly how much depreciation recapture was going to cost if I took the profits rather than executing 1031 exchange. Upon researching 1031, my eyes were opened to multi-family and I found my first building.

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

MLS. Negotiated as licensed agent.

How did you finance this deal?

30yr Conventional. 25% down. All which was covered by 1031.

How did you add value to the deal?

Rehab units when tenants vacate. Raised rents which have gone from $650 to $825 in 2 years. There is probably more room to go as well.

What was the outcome?

Still holding. Currently working refi. With the refi, I plan to rehab exterior, replace roof, and invest additional funds in an additional property.

Lessons learned? Challenges?

Don't be afraid to raise rents and force bad tenants out. It makes the entire building a nicer place to live.