Investment Info:
Small multi-family (2-4 units) buy & hold investment.
Purchase price: $240,000
Cash invested: $80,000
I rented the top on a 12 mo lease at $1,850.00/mo and the bottom is an Air BNB that's crushing it
What made you interested in investing in this type of deal?
I was looking for a small multi family unit and had been working with the previous owner for some time. It just came together
How did you find this deal and how did you negotiate it?
I was in contact with the owner for years leading up to this, he lived on the east coast. I was adding value and we pulled the trigger when
How did you finance this deal?
We negotiated 30k down and interest only payments for 24months. no early payoff fees. Then I took out a hard money loan for 85k and used ut fir holding costs and the renovation.
How did you add value to the deal?
Fully renovated both levels, 2 2/1s mid century modern design. Stainless steel appliances bring in top rents.
What was the outcome?
refinanced the property at 70% for $310,000 the appraisal came back at 430k.
Lessons learned? Challenges?
Don't do the renovations all yourself. I love doing home renovation projects but next time around will be 90-100% leveraged with other contractors. Time was a challenge. I worked on this project for the better part of 8 months. Looking back, I could have been doing so much more with my time.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
I did. My morgage brokers at Nevada County mortgage were rock stars. They've really come through every time I've needed them. As well as Placer Title Co. in Grass Valley. Those guys are great too
