Buy and hold- distressed 4plex in Long Beach CA

[Tammy Skeath]

Investment Info:

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

Purchase price: $750,000
Cash invested: $187,500

Bought a value add quadplex that was almost all vacant in Long Beach CA. I plan to rehab the 4 units and the exterior with a budget of $104K and then rent the units out in about 60 days for market rents.

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

The upside in rents and the fact that it was being delivered vacant.

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

MLS. The broker had already been working on this owner and knew the price to come in on.

How did you finance this deal?

Conventional loan. 25% down.

How did you add value to the deal?

We completely remodeled the entire building. All 4 units were gutted. Brought all the rents up to market.

What was the outcome?

Cash flow about $1000/month plan on selling in the next 2-3 years.

Lessons learned? Challenges?

When gutting a building still expect the first few months of tenants being in to have some maintenance work bc your still dealing with an old building.

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

Buckingham investments