First multi-family property!

[Laura Bowler]

Investment Info:

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

Purchase price: $147,500
Cash invested: $36,875

Bought my first multifamily property! Home is historic (1900) and is a single family home converted to a duplex. The upstairs unit was already rented by a long term tenant, and she agreed to stay on with a rent increase to $650. In the process of fixing up the bottom unit and hope to ask $950-1000 for the bottom unit when it's done. With a mortgage around $800, this should provide some needed cash flow, and build equity in a property we may need in 5-10 years.

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

Bit of a multi-functional purpose - we wanted to break into multifamily, but were also looking for a long term hold property in Flushing as a future secondary home (location where my stepdaughter resides).

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

MLS. Property had been on the market over 2 months, and we offered $145K (list price at the time was $160K and had started at $180K). Settled at $150K, and then negotiated down another $2500 after foundation issues were discovered.

How did you finance this deal?

Mortgage + 25% down payment

How did you add value to the deal?

Replaced flooring in bottom unit to upgrade unit. Increased rent in upstairs unit, but added access to onsite laundry room.

What was the outcome?

Ongoing. At the moment it's losing money until we get a tenant into the bottom unit, but should cash flow $200 per month minimum.

Lessons learned? Challenges?

Foundation estimates are hard and can be quite expensive!

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

Academy mortgage (Shawn) had the most seamless mortgage process ever! And our agent at Keller Williams, Matt Barnett, was amazing about trekking an hour north multiple times for us!