Multi-Family Fun that has shown great returns

[Joshua Christensen]

Investment Info:

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

Purchase price: $250,000

This is a great little 4 plex we picked up on owner financing. So far in the first 18 months we've been able to gain nearly 30% in monthly rents and increase the value 38%. It has been a nice little property for us.

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

We had some single family and wanted to spread the risk over multiple units to reduce vacancy shock.

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

We found it networking on Facebook and negotiated owner financing on it.

How did you finance this deal?

Owner Finance

How did you add value to the deal?

We've raised rent, new water heater and coolers, updated 2 of the units, new exterior stucco

What was the outcome?

Nice increases and cash flow on the property

Lessons learned? Challenges?

Screen tenants - Always. We had some residents we inherited involved in a shooting with another resident. Suddenly there were 2 vacancies and a lot of damage. Carry proper insurance. This saved us both damages and Lost rents.

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

I am a broker.