Investment Info:
Small multi-family (2-4 units) buy & hold investment in Phoenix.
Purchase price: $355,000
Cash invested: $195,000
Bought this as part of a 1031 exchange, prior SFR was geting about 350 a month cash flow this purchase made that cash flow go up about 1000 a month.
What made you interested in investing in this type of deal?
More doors and higher monthly cash flow.
How did you find this deal and how did you negotiate it?
MLS, was reduced and they turned down the first offer. We came back later at less and. they took the offer.
How did you finance this deal?
Long term 30 year.
How did you add value to the deal?
Pulled items up to date that were needed, about 13K and will be raising the rents anually to increase the value. 2019 we will paint and put in all new carpets to add additional value.
What was the outcome?
So far so good, exit strategy will be at the 48-60 month mark for highest Cash on cash return.
Lessons learned? Challenges?
So far make sure all leases are legit, 1 was not and had to work through that with seller and current tenant.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Scott Knight was the agent and did a great job!
