Scary crawlspace but excellent income+ARV.

[David Austin]

Investment Info:

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

Purchase price: $119,000
Cash invested: $14,000

Purchased a 3bd/2bth 1600sqft $0 down for $119,000. Did a live in flip and added efficiency/mother-in-law suite for $14,000 cash in. ARV $198,000. Did cash out refinance for $138,000 on 3.25% 30yr. Looking to get $1,000-$1400/mo for 3bd/2bth and $450-$700/mo for efficiency apartment.

How did you finance this deal?

in house loan from local bank.

How did you add value to the deal?

added efficiency apartment

What was the outcome?

Got all my cash back out +$4000 and renting two doors.

Lessons learned? Challenges?

Because I had been watching the market and knew the numbers I was able to move quickly on this deal. However, if I had crawled all the way through the crawl space, it would have scared me out of buying. But after having done the deal, I'm glad I didn't crawl under it because it worked out as a great investment. On paper it's ARV and rental income is excellent. The crawlspace may scare buyers later on, but since i'm doing a buy and hold for 30+yrs with no money out of pocket, I'm not concerned.