2nd Multi-family purchase

[Erik Mihlsten]

Investment Info:

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

Purchase price: $1,435,000
Cash invested: $500,000

3 Unit property, 1-1bd 1bth, 1-2bd 1bth and a SFR (3bd,2bth)

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

This was the ugliest house on the block in a good area. It required a full gut reno, but the pro-forma for a "luxury" updated property was very good. Happily, it has exceeded expectations on Monthly cash flow.

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

I spend a lot of time scouring Zillow, Redfin etc and found the property that way.

How did you finance this deal?

Traditional lending.

How did you add value to the deal?

I found the deal and managed the deal. We also managed the remodel and the rental process. We still hold the property in our portfolio and manage it ourselves.

What was the outcome?

A happily rented property that is positive cash-flow! There are limited issues since we worked hard in the renovation to do everything right and get ahead of what could have been future problems.

Lessons learned? Challenges?

Just learning more about budgeting for a renovation. That has been a constant learning experience.