2 Plex in Murray Utah

[Lance Jorgenson]

Investment Info:

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

Purchase price: $499,000
Cash invested: $90,000

2-Plex with 3 bed rooms and 2 car ports for each side

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

I start looking at properties me and my Agent started running numbers and be put me on a list for properties in the range that I was looking for.

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

We found it on the MLS and we gave them a full offer and was able to get the deal since I was able to let the seller know that we had bought a property before and wasn't new at this. After they accepted the offer we did inspections and was able to get them to do $5,000 in repairs (repainting, plumbing, flooring, sprinklers, & fence) then got $4,000 in credits for other repairs. But had my handy man fix it all for $2,500.00

How did you finance this deal?

I did it through a local Credit union that only required 15% down 30 year with a 15 year buyout it has a 3.5% rate. Down side it had a 1% origination fee.

How did you add value to the deal?

We had to get tenants into both apartments but was able to rent for $1,600 per side.

What was the outcome?

So far it is has been a good cash flowing property and in increase in value and looking forward to loan pay down and being able to increase in rent as property increase in value. so far it as increase in about $60k in profit here in a couple of years as properties increase will look at refinancing and getting my cash out to reinvest

Lessons learned? Challenges?

That I need to trust what professionals say It was hard for me to believe people are paying the amount of rent for apartments. But i felt it was better to investment in a asset then to leave in savings and stocks.