First 3 Family with Garages!

[Karl Denton]

Investment Info:

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

Purchase price: $150,000
Cash invested: $50,000

Has a larger multi-garage on the lot, those are all rented out and producing income. Also has a larger lot and currently I have one parking space rented to a neighboring tenant on another property.

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

The price point and how well the property had been cared for.

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

Found the seller didn’t want to manage the property anymore. Had contacted my wife and was a family member on her side.

How did you finance this deal?

We had used our cash we had saved up.

How did you add value to the deal?

We installed 3 natural gas furnaces and did a couple minor upgrades. Newer glass top stove in one unit and new thermostats. Doing 3 furnaces allowed for no more oil and the tenants now pay each of there own bills.

What was the outcome?

Outcome was less bills we have to pay and more cash flow due to that.

Lessons learned? Challenges?

Still finding a good system to manage everything. Challenges on this we’re switching over to have the tenants on a lease and more responsibility. They were use to cash and no lease of any kind. Price increases and changes scared them however they were good tenants and we kept them all after the increases.

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

Looking to work with one we have been talking to.