All Forum Posts by: Leroy Fryer

@Robert Rixer thank you

Thank you all for your advice. This gives me a lot to think about. 

Hi all, last April I purchased my first multifamily property. It has definitely been a learning experience. Lots of ups and downs. My goal is to at least buy one additional property a year. I have had challenges with the first property, but by April I should have all the bugs worked out and have three good paying tenants and very little issues with the property itself. 

I currently have $62,000 in equity in the current property. I would like to use the equity to purchase another multi-family property. I've found quite a few around a local college. My questions are, what are the benefits or drawbacks of using the equity I have in my current rentals and how do you feel about renting in college areas?

Thanks in advance 

Roy

Investment Info:

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

3 unit apartment complex

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

I like the fact that one and a half units pays all bills.

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

I found the listing on Zillow and found out I knew the wife of the seller. I was able to get more information on the property then if I didn’t know the seller and I’m still able to contact the seller if I have questions.

How did you finance this deal?

I went all in, I had a few 401K’s so I cashed in the one that was growing the slowest and took the penalty and purchased my first property.

How did you add value to the deal?

I turned the two smaller bathrooms in one of the apartments into larger one. I purchased a new furnace and water heater for another unit.

What was the outcome?

I own a profitable property for my first purchase.

Lessons learned? Challenges?

I’ve had to step out of my comfort zone and do a lot of the repairs myself. I also had to evict one of my tenants that I inherited after owning the property for only 7 of owning the property. I’ve learned that it is a very expensive ordeal but having a good lease helps remove the tenants faster.