Deal Diaries

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Isaac Hayes
  • Investor
  • Austin, TX
27
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32
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Second Deal - Buy and Hold

Isaac Hayes
  • Investor
  • Austin, TX
Posted Jan 27 2022, 17:37

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Columbus.

Purchase price: $319,000
Cash invested: $90,000

The rents at this property are below market value, and I plan on increasing them to the market rate to increase the cash on cash return.

What made you interested in investing in this type of deal?

I'm interested in passive cash flow through real estate to enable me to stop trading my time for money. This deal aligns with that goal.

How did you find this deal and how did you negotiate it?

I found it on the MLS
List price: $340k
Initial offer: $296k
Seller counter offer: $327k
Accepted offer: $319k

How did you finance this deal?

Conventional financing

How did you add value to the deal?

I plan on increasing rents to the market rate

What was the outcome?

Purchasing my second deal

Lessons learned? Challenges?

A different buyer had this property locked up since they offered more than me. When that buyer fell out of contract, we were the backup option. I learned to keep monitoring a deal you're interested in until it closes in case it falls out of contract.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Zeke Liston at Reafco

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