3 Plex in Salt Lake Cityh

[Lance Jorgenson]

Investment Info:

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

Purchase price: $345,000
Cash invested: $90,000
Sale price: $450,000

I purchased this property with the plan to Buy & Hold but after going over things with my Agent and he presented me with an opportunity to invest in and could sell this and get a 17% in a 29plex so going to take the $160,000 ($70,000 profit + $90,000 invested)

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

It was my first deal and I just had the desire to get a property I had looked for 3 years trying to find the right property, Agent, & property Manager. It seemed liked everything lined up with this deal.

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

I found my Agent after I went to the Utah apartment association and meet a member that recommend a Agent that specialized in Investment property. I met with him and went over what I wanted above 1 month later he called and told be about the property.
It was list for $354,000.00. I got them to lower the amount to $345,000.00 and to fix part of the roof

How did you finance this deal?

I had to go through my local bank that I worked through with my company since my company had a huge loss the year before since we shut a division down. I had to do 25% down on a 30 year conventional loan. The cash for the down payment came form my Tax return.

How did you add value to the deal?

Over the past 2 years we move two tenants out and raise the rent by $250.00 on the property

What was the outcome?

It made me about $4,000 dollars over the 2 years in cash flow and about the same in tax savings. Plus of the sell making $70,000.00

Lessons learned? Challenges?

When a tenants start to be problematic it is better to move them out and start out fresh I tried to hard to work with them and was to easy and gave to many chances and got burned with having to do a lot of repairs