Investment Info:
Small multi-family (2-4 units) buy & hold investment.
Purchase price: $415,000
Cash invested: $63,000
This is our first out of state investment. It is 2 duplexes on one lot. We partnered up with another investor and friend to purchase the property using a typical 20% down conventional financing. All 4 units were well below market rent so we got a new property manager, raised the rents and plan on renovating units as they become vacant. That along with updating the exterior of the property will continue to raise value and rent prices.
I've ran a minimum of 5 deals per day for the last several months just familiarizing myself with the area and what the local market is doing. When this deal popped up on the MLS, I knew it was one we wanted to make a play on!
What made you interested in investing in this type of deal?
Small Multi-family is perfect for what we are looking for at the moment
How did you find this deal and how did you negotiate it?
Sent to me by a local agent. Unfortunately, not a lot of negotiating given the current sellers' market and multiple other offers
How did you finance this deal?
Conventional loan with 20% down
How did you add value to the deal?
raised below market rent and will update exterior of property
What was the outcome?
Just over $1300/month in net cash flow
Lessons learned? Challenges?
Because I had been running multiple deals daily, I knew this was a great one right when it came on the market. Be prepared!
Being out of state we relied heavily on our Realtor. Having your team in place is crucial to investing in another state.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Lee Ripma was our agent and couldn't recommend her enough.
