Buy and Hold 4 family with conventional financing

[Andres Ospina]

Investment Info:

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

Purchase price: $1,100,000
Cash invested: $316,000

Sold a 2 family and took my profits and reinvested into this 4 family with much better cash flow, location, and cheaper financing.

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

great location. value add with little rehab. Great buy and hold option in an good neighborhood with low taxes.

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

found it as a FSBO. I appealed to the owners emotions as it had been in the family for many years. Gave them a quick offer with pre approval and attorney information.

How did you finance this deal?

conventional financing.

How did you add value to the deal?

I increased the rents on all the 3 occupies units. I made the property more visually appealing by changing lights fixtures, painting, removed carpeting and staining wood floors.

What was the outcome?

increased monthly cash flow.

Lessons learned? Challenges?

move quick and make offers that work for you.
Because of the conventional financing options. The property was only appraised on a comparable basis with no comparables in the near area it under appraised. Our commercial appraiser actually valued the property for more than what we were paying for it. So we had to bring extra cash to the closing.

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

Our trusted lender got us a fixed 30 year mortgage at 2.7%