Investment in March
Investment Info:
Single-family residence buy & hold investment.
Purchase price: $480,000
Cash invested: $256,000
Sale price: $480,000
Bought the property as an investment. It has 2 units but the basement is non conforming. We got the whole place rented for $4500 immediately after closing which is above a 10% cap rate.
What made you interested in investing in this type of deal?
We were looking for a multi family in Humboldt Park area for the high value appreciation, cap rate, and rental increases. We found this opportunity just north in Portage Park and it was a deal.
How did you find this deal and how did you negotiate it?
It was on the private market and was in great condition. We initially offered $470K and bought it for $480K.
How did you finance this deal?
Put down 53.33% ($256K) and got a mortgage for 6.99% on the remaining $224K.
How did you add value to the deal?
I negotiated the seller down from $515K and financed the property through the lender I work for as a loan officer.
What was the outcome?
We rented it out for $4500 and the estimated value is now $526K based on a comp from another property in the area.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
I did both sides of the transaction and it went smoothly as usual.