All Forum Posts by: Reece Stanley

 Thank you!

Investment Info:

Large multi-family (5+ units) buy & hold investment.

Purchase price: $355,000
Cash invested: $70,000

Purchased with funds from a 1031 Exchange. We bought this building as a 4-plex and added another unit in the basement. Seller needed to sell quickly and we were able to talk him down $25,000.

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

We sold our duplex and were looking to use a 1031 Exchange into a larger multifamily property.

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

This deal was found on the MLS. We put in an offer at list price. However the appraisal came back low and allowed us to get the deal for $25,000 cheaper.

How did you finance this deal?

We used a 1031 exchange and because it was a 4-plex at time of purchase we used Conventional Financing.

How did you add value to the deal?

We have added a new unit in the basement and made improvements to other units upon turnover.

What was the outcome?

Still holding strong. Considering the possibility of selling and repeating the 1031 Exchange into a larger multifamily deal??

Lessons learned? Challenges?

Learning how to screen tenants more thoroughly as well as how to develop a professional relationship with inherited tenants.

Hey Matthew,

We bought it as a primary and lived in it for about a year. We then purchased a foreclosure as our primary and kept the duplex for another couple years before selling in a 1031.

Thank you Nathan! Getting there!

Investment Info:

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

Purchase price: $190,000
Cash invested: $5,000

This property consisted of two small single family homes on one lot. They were both way under rented and didn't even come close to the 1% rule.

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

The ability to purchase a property with two or more units wasn't real common in my market at this time. Along with that, the location was the main sale point. It is only two blocks from the University.

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

Found the property on the MLS listed at $195,000. During the inspection period was able to get the price down to $190,000.

How did you finance this deal?

Conventional financing with a personal loan for the down payment. Nearly 100% financed.

How did you add value to the deal?

Slowly increased rents. Once one tenant moved out, did a complete reno and nearly doubled the rent.

What was the outcome?

Still holding. Never vacant!!

Lessons learned? Challenges?

Get the sewage scoped in older homes!! The drainage was old Orangeburg pipe and was about $7500 to replace.

Investment Info:

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

Purchase price: $107,000
Cash invested: $20,000
Sale price: $160,000

House Hack Duplex. Sold in a 1031 Exchange for a small apartment building.

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

This was my first home purchase. Off setting my mortgage by renting out the basement unit was very appealing to me.

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

This was an MLS deal that had been on market for a while. It was listed at $114,500 and was vacant.

How did you finance this deal?

Conventional Financing

How did you add value to the deal?

Refinished both units and increased rent. The basement unit covered the mortgage and utilities allowing us to essentially live there for free.

What was the outcome?

After holding it for over four years we decided to reposition into a larger multi-family.

Lessons learned? Challenges?

With this being my first property there were many lessons learned.
*Do your research.
-Understand what a conforming vs non-conforming unit is.
-Understand tenant/landlord laws.
*Always screen your tenants and don't do them any favors by bending your requirements