3 duplexes purchased in the Triad

[Chris Pappalardo]

Investment Info:

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

Purchase price: $230,000
Cash invested: $49,000

3 duplexes

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

The properties had very under market rent and all the duplexes had new roofs, heating and air systems and windows. They were fully rented and turn key properties

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

commercial broker

How did you finance this deal?

80% LTV commercial loan

How did you add value to the deal?

Starting to raise the rent as all the tenants are on month to month leases. Had 2 people turn in their notice. We are putting in new flooring and rerenting them for an additional $150 a month

Lessons learned? Challenges?

All the units were occupied, so getting into them to see the overall condition was a challenge.

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

I am a Broker so I was my own agent. We work with many investors in our area and kept this one instead of passing it on to others.