San Diego, CA. First Triplex!

[Lawrence Feder]

Investment Info:

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

Purchase price: $730,000
Cash invested: $6,500

Duplex home, with 3 units. First floor is has a main unit 3/2 newly renovated with new appliances, pass-though door is 1/1 unit (granny flat) newly renovated with new appliances as well. Upstairs unit is a 2/1, which needs to be renovated in the near future. When all three units rent out, predicting $1500 cash flow.

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

Utilizing the VA loan, doing house-hacking. Living in one unit, and renting out the other 2 units, until i move out in a year and rent out all three units. Split the cost of all assets, operating costs, everything with my business partner Douglas Anderson.

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

Contacted my agent Donnie Appleberry and loan officer Jon Lallande (check them out in BP!) about the property. Was listed at $750k, we negotiated it down to $730k, with $10k closing cost seller credited. Had a few minor contingencies to fix by the seller and closed fairly quick in less than 3 weeks! Also, had a tenant in one unit, already in place when we closed.

How did you finance this deal?

VA loan, no down deposit. Ended up with a 2.75% interest rate, 30 yr fixed.

How did you add value to the deal?

In the process. Bought 2 new refrigerators, new community washer and dryer, purchasing the Ring home security system, spotlights and cameras all around the property. Planing on renovate the 2/1 units upstairs to match the downstairs units in the near future.

What was the outcome?

Still in progress....keep you posted.

Lessons learned? Challenges?

Anticipate a little more than expected for closing costs. Seller credited $10k, but closing costs were around $15k. Ate up most of my earnest money deposit of $7k, which i though i was getting back.

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

Donnie Appleberry- Agent
John Lallande- Loan Originator

Awesome guys to work with. Veterans. They understand military financing with VA and how the VA loan process works. Professional and straightforward. Donnie is great with negotiations, and John got me an awesome interest rate!