4plex value add during COVID in Reno - Buy and Hold

[Kristi Kandel]

Investment Info:

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

Purchase price: $300,000
Cash invested: $73,000

4plex remodel

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

Huge value add opportunity

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

MLS and it was a fair price so we offered asking with a short response window

How did you finance this deal?

construction loan for the purchase and cash for the rehab prior to a refi cashout

How did you add value to the deal?

completely renovated interior and exterior

What was the outcome?

Awesome cash flowing rental with great Tenants and we can now laugh about the ringer we went through with Tenants, evictions, COVID, rehab, etc.

Lessons learned? Challenges?

Bought pre-covid in Jan 2020. Were too nice and wanted to give Tenants 60 days to move out prior to rehab. 1 of the 4 refused to move and the eviction process started. In March the judge also gave the Tenant leeway during the eviction hearing until the end of the month and 2 days prior to lock out date NV stopped all evictions even those in process. Eventually in August Tenant moved out and we finished the rehab. If this were the first deal an investor did they would never again. Now we laugh.