- New to Real Estate
- SW Michigan
- Votes |
Small multi-family (2-4 units) buy & hold investment.
Purchase price: $89,500
Cash invested: $28,438
Bought our first multi-family investment property from a private seller who is on his way to retirement. Turn-key property, Appraised at $120,000. Plans to update it and see where it goes.
What made you interested in investing in this type of deal?
I like multifamily because it makes it possible to renovate and profit at the same time.
How did you find this deal and how did you negotiate it?
Introduced to the seller through a classmate in college. No negotiations were needed.
How did you finance this deal?
25% down Freddy conventional loan. Split the downpayment and profits with a friend. Borrowed money from a parent while my car is in the process of being sold.
How did you add value to the deal?
We plan to update the flooring and repaint, Plus clean the exterior.
What was the outcome?
Instant equity and 54% CoC
Lessons learned? Challenges?
That there are seller closing costs. Because the seller wanted a certain amount in his pocket at closing we had to work backward from that amount. The personal challenge was letting go of a car that I spent hours of hard work and money on that I saved up for years to afford.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Lindsay Flynn is an awesome property manager with good pricing out of Kalamazoo Michigan. She works for Berkshire Hathaway.