Buy and hold- Off market triplex in SE Cape Coral

[Tammy Skeath]

Investment Info:

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

Purchase price: $400,000
Cash invested: $119,000

Off market triplex in SE Cape Coral bought from investor.

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

The numbers made sense.

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

An investor I had met passed on this deal and referred me to it. The investor who was selling it had a firm price and It worked for me. so I agreed. Very little negotiation involved.

How did you finance this deal?

Conventional 30 yr loan. 25% down. 3.5% interest.

How did you add value to the deal?

I plan on giving the units a cosmetic refresh and bringing them up to market rents over the next year.

What was the outcome?

It’s already a cash flowing property but I hope to bring it up to a 11% cash flow property over the next year. I will probably sell the asset in 3-5 years.

Lessons learned? Challenges?

I had some issues with financing and I learned the lesson of working with a good loan broker. Still working on establishing better connections in the lender world, Specifically in commercial.