Cash Flowing 4-Plex in Sacramento

[Inno Ekeh]

Investment Info:

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

Purchase price: $355,000
Cash invested: $100,000

Great +CF 4-plex deal in Sacramento CA (which is becoming more rare everyday)

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

Split risk in MF purchasing is always ideal.

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

Scouring the internet and reaching out to brokers in the area

How did you finance this deal?

Started with a bridge loan, then a refi to conventional after 1 yr of rehabs and other value increases.

How did you add value to the deal?

Raised below market rents
Exterior paint
Light structural repairs
Transferred some utility billing back to tenants over time

What was the outcome?

Beautiful +CF deal, with minimal issues

Lessons learned? Challenges?

Make sure to understand where the costs are coming from and work with the tenant to solve problems, if you can

[Sean Smith]

@Inno Ekeh Just a heads up, many water utility companies in Sacramento have started, or are trending towards, billing by usage. If your water meters aren’t already separated out, many of these utility companies are willing to install water meters for free as part of the transition over to this billing format. Might be a nice way to build in future savings. Sounds like you have a good deal here - congrats and best of luck moving forward!