Investment Info:
Small multi-family (2-4 units) buy & hold investment.
Purchase price: $425,000
Cash invested: $110,000
2 unit property with a 3bdr up and 1bdr down. 98k for the down payment and closing costs, 12k for updating ( 1 bdr turnkey, 3bdr replaced floors, updated electric with recessed lighting and new devices through out. Unit was a 2 bdr, converted a second, small living room into the 3rd bdr.) Purchased for 425k, recently appraised for 507k. Currently occupied with wonderful tenants.
What made you interested in investing in this type of deal?
The spread worked out to hit my investment goals
How did you find this deal and how did you negotiate it?
Right off the MLS, working with a local agent.
How did you finance this deal?
Conventional financing with 20% down
How did you add value to the deal?
The timing added the most value, along with some interior upgrades.
What was the outcome?
A good quality performing asset
Lessons learned? Challenges?
Look for more value add opportunities for the next deal. Not quite enough equity for a cash out refi to work well for me.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Yes I worked with Caitlin Shelton at Realty Connect. Her family owns and operates a number of rental properties and was a major asset into buying this property. She also took care of getting the units rented out as well as most of the required updating. In a 36 hour span, she had multiple quotes for me from all the sub contractors and a few days later everything was taken care of under budget.
