The Cutest 6-Plex in Alvin

[Babes Hoffower]

Investment Info:

Large multi-family (5+ units) buy & hold investment.

Purchase price: $292,000
Cash invested: $58,400

6-Plex - 3 units are 1 bedroom, 1 bath and 3 units are efficiencies.

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

I have a thing for older properties with big trees. Plus, I want to grow more than 1 door at a time. This is my first step in the multi-family arena. Six small units seemed like the right stepping stone.

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

I found this on the MLS. They were asking for a price that would have worked if the utilities were metered. I offered them less. At first, they went w another buyer. But their 1031 timeframe was not working as the sellers wanted to wait until past the new year. I was in no hurry. After inspection, my offer dropped again. They agreed.

How did you finance this deal?

Commercial loan with a local credit union.

How did you add value to the deal?

We cleaned up the outside. When tenants have moved out, we painted, replaced fans. The rent increased and we added a utility charge.

What was the outcome?

We have been able to keep it full. Great tenants.

Lessons learned? Challenges?

I probably could have gotten for less if I were more patient.

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

Terri Clawson helped me with this deal.