Investment Info:
Small multi-family (2-4 units) buy & hold investment.
Purchase price: $403,000
Cash invested: $90,000
Sale price: $446,000
3/2 with 1 bedroom guest house. Renting house for $2000/mo and air bnb the studio $1500/$2000mo.
What made you interested in investing in this type of deal?
The location is in a B class neighborhood. It is a 3 bedroom that could be 4 by converting enclosed back porch. It also has a free standing guest house with separate entrance and yard that will make a great air bnb. It has a 10x60 workshop/storage unit which will hold all of my tools and be used for property management. There is room for 2 R/V's and 4 cars to park.
How did you find this deal and how did you negotiate it?
I am a realtor.
How did you finance this deal?
I borrowed down payment from investor and hard money. Refinancing in 6 months.
How did you add value to the deal?
I am using my commission for upgrades to the property. Based on my comps, I got seller to come down 30k on purchase price. I can do most of the remodeling myself. I have done extensive remodeling in my previous career.
What was the outcome?
We are closing tomorrow.
Lessons learned? Challenges?
Do your taxes and you may not need to refinance in 6 months on the next one. I need to build my credit lines and my credit score.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
I found this property while looking for property for another investor. I went through 3 lenders for traditional financing and failed. Using hard money now to close deal.
