Value add 4 plex in Long Beach CA, with loads of potential.

[Tammy Skeath]

Investment Info:

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

Purchase price: $750,000
Cash invested: $187,500

Bought a value add quadplex that was almost all vacant in Long Beach CA. I plan to rehab all of the 4 units and the exterior with a budget of $104K and then rent the units out in about 60 days for market rents. I should be cash flowing about $125/per unit a month.

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

It had potential to cash flow in an area that doesn't always cash flow. It has great long term appreciation potential because it is in the path of progress and there is a bonus area that could work for an ADU.

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

Through a real estate investment group in Long Beach CA- Buckingham Investments.

How did you finance this deal?

Conventional loan 25% down.

How did you add value to the deal?

Rehabbing it for $104K

Lessons learned? Challenges?

Given the circumstances with Covid-19 I was able to renegotiate price and get a credit on closing costs.

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

Buckingham Investments