My first small multi-family rental property

[Nicholas Z.]

Investment Info:

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

Purchase price: $108,000
Cash invested: $27,000

This is my first multi-family deal and I'm already seeing the cash flow benefit.

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

Mostly turnkey with separate utilities, which were both important to me as someone who's just getting started.

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

Another investor was looking to sell off some properties and it cash flowed at the offer price, so I went accepted it.

How did you finance this deal?

Commercial mortgage - 25% down, 20 year amortization and 5 year term.

What was the outcome?

A cash flowing property.

Lessons learned? Challenges?

One thing I didn't realize was that I would need to pay for lawn care in a multi-family property. I didn't take that into account when I ran the numbers, so I updated my spreadsheet to automatically add in the cost of lawn care for multi-family properties.

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

I got my mortgage through Blue Grass Savings Bank. Very easy to work with, easy to talk to someone with questions.

[Nicholas Z.]

@Nikita Jain  

@Aj Parikh

Weird! The city didn't come out in the post for some reason. This is in Davenport, Iowa.

@Dena Puliatti in this case, the city has trash collection and the tenants are responsible for putting out their own trash, but I will definitely add this to my list of things to check on new rentals. Thank you.