My first multi-family deal

[Joe Forte]

Investment Info:

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

Purchase price: $58,000
Cash invested: $50,000

4 Bedroom 2 Bath Up/down duplex with 1600 sq feet total - built in 1958.

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

My goal for year-1 was to add a duplex to my portfolio.

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

My wife found it. Bought it off a wholesaler. They agreed to come down $5k.

How did you finance this deal?

Cash to buy, hard money to pay for rehab.

How did you add value to the deal?

Complete rehab - new kitchens, baths, all new flooring, new windows, added central air for both units,

What was the outcome?

All in for 108k, Appraised for 133k. Left $16k in the deal. Rents for $1,450. Cashflow = $600. Cash-on-cash return = 45%. Met the 1% rule.

Lessons learned? Challenges?

My first experience with a hard money lender was fantastic. From the application process, through the end with the draws, I was quick to respond to their requests, and provided highly detailed documentation on my draw requests. I built a level of trust with my professionalism on our phone calls and email correspondence, to the point when I started requesting draws, my draw requests were detailed with before/after photos, and receipts - they did not bother to send out an inspector.

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

My Hard Money Lender was amazing - Capital Funding Services Corp - capitalfundingsvcs.com