All Forum Posts by: Kyle Black

Quick update on the unit.

Finished renovating the biggest unit and ran it as an air bnb this past summer. It averaged $3,508/mo gross over the 6 month touring season and have renters moving in for the next 6 months at $1,825/mo furnished. 

The 2 smaller units both received a face lift with a fresh coat of paint, new hardware, and new counter tops and both rent for $900/each.

After all the renovations, the estimated ARV is currently sitting at $550k-$570k.

It was a fun learning experience for my first one. Thanks everyone for your insight! Here are some before/after pictures.

Thanks Martin!

@Sam Domach Right on. I appreciate that insight on the cash-out refinance as opposed to heloc. Perhaps I was thinking they are more similar than they are - I will make sure to dig into that before I cross the bridge.

 I am on the home stretch of renovations for the largest unit and you're right, it will definitely be nice to see the returns after the renovations. Hoping to have it up and running by December.

Thanks @Dmitriy Fomichenko , been a long time coming.

@Keith Miller The unit already had long term renters in place. The rents were pretty low, so I set them both to $700.00/mo and moved into the top unit myself. I didn't have the capital to flip all three units at once, so I figured keeping solid renters was more beneficial than raising the rents to true market value and running the risk of getting potential problem renters - especially while I was working out of town.

Investment Info:

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

Purchase price: $385,000
Cash invested: $9,048

A 1,650 sqft triplex containing 3 1bd-1ba units.

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

I travel for work, so house hacking made the most sense for me. I also am at the stage where I would prefer to not have roomates anymore - so I opted to go the multifamily route.

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

Found the deal on Realtor.com. I had looked at several properties already but was beaten out by other buyers offering well above 20k over asking.

The sellers agent said they were reviewing deals as they came along, so I sent in my offer a few hours later and had it accepted the following morning.

How did you finance this deal?

All personal money. Because I am occupying the building, I opted to go the FHA route.

How did you add value to the deal?

Currently adding value. I am in the process of renovating the largest unit. I hope to renovate the other two in the next 18-24 months and then do a HELOC to purchase another building.

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

Michele Hall in Missoula is an absolute rock star. Will be using her for ALL of my deals in Missoula going forward.