First Multifamily Investment in Portsmouth

[Collin Blackburn]

Investment Info:

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

Purchase price: $117,000
Cash invested: $35,000

Contributors:
Remington Blackburn

First multifamily property! Low maintenance duplex. (Sorry these are old investment posts, but I'm trying to add all my investments to my profile! There are going to be 7 more of these posts trickling in over the next week unless I figure out another way to do it)

We might be looking to sell this one at the beginning of next year (Looking at selling for the same reasons we sold our quad... ROI vs. Return on Equity).

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

Cash flow. I had purchased a handful of single family homes in the past before I found Bigger Pockets. I hadn't ever thought about multifamily before Bigger Pockets turned me on to it. The cash flow numbers for multifamily were so much better than single family and this was the first place I found and liked!

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

This deal was on the MLS. It had been on the market for a while so we offered about $15,000 below list. We were ready to meet in the middle but the seller accepted. The inspection showed that the foundation needed to be repaired (about $12,000 total). We asked the seller to pay for all the repairs but we were going to be willing to split the repairs 50/50. The seller accepted our offer though and paid for the entire repair!

How did you finance this deal?

Conventional Investment Loan

How did you add value to the deal?

The property was turn key.

What was the outcome?

We've had a great investment property that has required minimal maintenance. One of the tenants struggled with rent and made partial payments due to Covid for a few months but they are back on track.

Lessons learned? Challenges?

We have reserves, but this solidified how important it is to have sufficient reserves in the event of uncontrollable circumstances.