First Multifamily Deal

[Tyler Sweet]

Investment Info:

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

Purchase price: $200,000
Cash invested: $55,000

Triplex.

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

I am very into small multifamily properties, and this deal was sent my way by a realtor I knew.

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

The landlord was very close to the tenants. However, the property was in a military town. So all the other offers were VA loans, meaning one tenant would have to move into the property and force one out. I came in with a conventional loan and ensured them I had no plans to occupy the property. I offered slightly below asking and got it, despite the market being red hot.

How did you finance this deal?

conventional loan, 25% down.

How did you add value to the deal?

Replaced the carpet with LPV flooring, added new windows, and fixed minor issues with the property.

What was the outcome?

Great so far!

Lessons learned? Challenges?

Having a knowledgeable property manager is a life saver. Especially, when you live out of state.