4-Plex Cash Flow Investment Property

[Hannah McArthur]

Investment Info:

Small multi-family (2-4 units) commercial investment investment in San Antonio.

Purchase price: $345,000
Cash invested: $100,000

Purchased for cashflow. 4-Plex multifamily. All maintenance was deferred. Gutted the insides, all new everything. Flooring, appliances, windows, etc.

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

I had lived over seas for almost ten years, my husband wasn't comfortable investing as aggressively as I wanted to from other countries so as soon as I knew we were coming back stateside I found the biggest property I could, that I could also live in as a personal residence.

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

Flew to the states 6 months before we would move stateside to look at multi-plex properties & find a good agent. No property, but found a good agent that understood what I was trying to do. Ultimately found the property on zillow while in England had my agent give me all the info on it, and do a FaceTime walk through. Made an offer, had it inspected, and purchased it. Requested a lower price due to some inspection items, but ultimately knew we were buying a "hot mess" with a great upside.

How did you finance this deal?

Nothing down, 30 year fixed, as a personal residence.

How did you add value to the deal?

Renovated everything. Negotiated price down from inspection.

What was the outcome?

Increased rental income by 112.50% by renovating everything and increasing rent accordingly.

Lessons learned? Challenges?

DON't pay your contractor till work is completed, this isn't Mayberry

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

Sharon Immel is a prenominal Agent in San Antonio Texas