MFH with a partner in Edinburg TX

[Boone Tyson]

Investment Info:

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

Purchase price: $190,000
Cash invested: $35,000

Value add 4-plex. Brought to me by a fellow BP member who wholesaled it to me and a business partner.

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

We were able to buy it below market value and it was in a sold location. We liked the potential it had.

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

It was brought to us by another BP member who has actually since become a good friend. We offered a little less than he presented the deal to us at and settled for a quick closing.

How did you finance this deal?

LOC

How did you add value to the deal?

We inherited 2 tenants and 2 vacant units. 1 tenant moved out immediately. We proceeded to remodel 3 units. Paint, Lighting, HVACs as needed, water heaters as needed, etc...

What was the outcome?

We completed a cash out refinance this year on it. It went really well. We left $35,000 in the deal. It appraised at $250,000 or so. Rent had been staking up while we rehabbed and refinanced, so we had about $20,000 sitting there when we finished. It is now stabilized and occupied with rents averaging over $700 per unit.

Lessons learned? Challenges?

We learned how valuable it is to have something in great condition. Everyone wants to be proud of where they live.