Investment Info:
Small multi-family (2-4 units) buy & hold investment.
Purchase price: $307,000
Cash invested: $100,000
Multi-family 4-plex in Pueblo, CO
What made you interested in investing in this type of deal?
I was interested in starting my financial independence journey and felt real estate was the way to go. Denver wasn't in my budget in terms price point for my first investment so I started investigating Pueblo, CO with its lower cost of entry. I found this deal as an investor special (we all know what that means ;-) and took the leap. It's well worth it in terms of the consistent HPI and expected growth over the long haul. This property is a buy and hold for at least the next 5-7 years.
How did you find this deal and how did you negotiate it?
I found this deal through the MLS and called the agent who happened to be the owner. We worked through the sale price and made the deal.
How did you finance this deal?
DSCR loan
How did you add value to the deal?
The entire building has been rehabbed and basically everything but the structure itself has been replaced.
What was the outcome?
It's in the final stages of completion and will be a mid-term rental property - Pueblo has a major shortage of housing for the much needed medical professionals. In the end 5-7 years down the road we would hope to sell the building and the mid-term rental business.
Lessons learned? Challenges?
Lessons learned is everything takes WAY longer than you hope and it's challenging to get on good contractors schedules due to the increased demand. My advise is just take the leap and stop getting ready to GET READY! ;-) It's never a bad idea to own real estate!
