Owner occupied fourplex purchase

[Mike Talamantes]

Investment Info:

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

Purchase price: $190,000
Cash invested: $50,000
Sale price: $415,000

Fourplex needing some remodeling. One unit needed an eviction so I was able to get a good deal with the sellers. It appreciated well over time.

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

The idea of having tenants pay for my mortgage while occupying one of the units.

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

As a real estate agent, I check out every residential income property that hits the market. I saw this fourplex sitting in the market for a few months so I decided to write an offer below the listing price. I was able to negotiate 3% of listing price towards my closing costs.

How did you finance this deal?

I did a FHA loan because I occupied one of the units. FHA required me to do some repairs prior to funding. I had a contractor do the repairs at my cost.

How did you add value to the deal?

I remodeled all 4 units over the time I owned it.

What was the outcome?

The fourplex appreciated well over the time I owned it. I sold it last year for $415,000 to use the funds towards other investments.

Lessons learned? Challenges?

The fourplex was a fixer so I learned a lot through the remodel. Its important to decide to what kind of upgrades you want to make as rental. I learned a lot about the eviction process as well.