Small Multi Family has been always good to me

[Mike Barone]

Investment Info:

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

Purchase price: $227,000
Cash invested: $50,000

This was my second multifamily purchased. I have increased rents since my original purchase and have created a nice cash flow. I will keep this one in my portfolio for sure.

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

I already had experience with small multifamily property and wanted to add to my portfolio. It was fully rented and turnkey when I originally purchased.

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

I found this deal by using a real estate agent. This was not a off market property, but the numbers worked at the time.

How did you finance this deal?

Conventional Financing

How did you add value to the deal?

After 10 years of saving most of the cash flow I used those funds to renovate the front unit. This increased my cash flow by 300$ per month. I still have some renovation to do in the second unit but will wait until the current tenant moves out.

What was the outcome?

I have a cash flowing unit with a ton of equity. It is paying itself off in 13 years and I estimate at least 1300/ month in cash flow.