Investment Info:
Small multi-family (2-4 units) buy & hold investment in Webster.
Purchase price: $243,000
Cash invested: $105,000
Multi-family property in the Philadelphia region. Renovating to hold and rent out units. Converting from duplex with a commercial space to a quad residential. Eventually will do a HELOC on the property.
What made you interested in investing in this type of deal?
Additional sources of income and I had an amazing agent at the time as well as my brother had a few properties.
How did you find this deal and how did you negotiate it?
My agent helped me look for deals on the MLS and Negotiated the best we could for a lower buying price.
How did you finance this deal?
FHA Loan
How did you add value to the deal?
converted property for duplex with commercial to a quad residential and renovated existing units
What was the outcome?
still in the works one unit completely renovated while another rented as is.
Lessons learned? Challenges?
Most of the money was spent on redoing electrical. Have to still Pull permits for the rest of the work. Finding a good timely and reliable contractor is a challenge with a limited budget, also learned that I had to get hands on and do a lot of the work myself to save money. Focused too much on renovating right away I could have rented units as is and collected lower rent until renovation was absolutely necessary and have cash flowed a bit.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Yes I work with an amazing agent that helps me find a good property and shared knowledge and understood investors mentality.
