Diamond In The Rough

[Noel Figueroa]

Investment Info:

Small multi-family (2-4 units) buy & hold investment in New York City.

Purchase price: $105,000
Cash invested: $30,000

4 units: 3/3/2, semi-detached. 1 car garage,

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

It just made sense.

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

This was before the age of the internet. I drove around the city just looking and asking lots of questions. I met the motivated elderly owner who was moving out of State. He just wanted out.

How did you finance this deal?

In those days, the neighborhood was depressed and high crime. I couldn't get traditional financing. I was introduced to a hard money lender.

How did you add value to the deal?

Upgraded the kitchens and baths. Paint throughout. Resurfaced the hardwood floors. Replaced furnace.

What was the outcome?

Refinanced to purchase another property. Positive cash flow of just over $1,000 a month. Sold the property for $480K

Lessons learned? Challenges?

I should've outsourced the upgrades, and day-to-day management. I did much of the upgrades and management myself. I've since purchased several 3, 4, mixed use and commercial properties.