2nd Multi-family Purchase in first year

[Brian Caruana]

Investment Info:

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

Purchase price: $220,000
Cash invested: $40,000

Contributors:
Danté Belmonte

4 unit Home in Lincoln Park

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

Positive Cash Flow, BRRR Potential, Appreciation

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

Off Market working with Agent

How did you finance this deal?

Commercial Loan, 15 down, 25 year

How did you add value to the deal?

Raise Rent to Market, Upgrade infrastructure and external appearance on a 5 year plan still cash flow positive.

What was the outcome?

Cash Flow is positive immediately, basic self managed updates with trimming and cleanup while developing relationship with tenants. Section 8 supplements enough on 3 of the units at a rate that off-sets initial mortgage payment.

Lessons learned? Challenges?

Raising Rents on Long Term Tenants requires 60 day notice with section 8 (while not losing a good long term tenant).

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

@Dante Belmonte (Hunt Real Estate) and @Ben Mack (AmeriCU)