Investment Number 3 - 4th Property - 4 More Units!
Investment Info:
Small multi-family (2-4 units) commercial investment investment in Morgantown.
Purchase price: $245,000
Cash invested: $29,500
Another investment in the books! This one I am extremely proud of due to the negotiating skills involved. I was able to get the seller to seller finance 10% of the down payment, give me a 10k credit for some repairs, and repair some things on their own. The property is already fully occupied with about 4k dollars coming in through revenue and I will be cash flowing about 1,100 dollars a month right off the bat. Love keeping full ownership of properties and would rather get creative with financing than bring in partners and this one worked out perfectly!
What made you interested in investing in this type of deal?
The yield on the property was very high and the numbers worked great. I am also able to value add on the property by getting utilities off to the tenants.
How did you find this deal and how did you negotiate it?
Found this deal through a fellow listing agent in the area. I was able to negotiate very well during the deal as a married couple was getting divorced.
How did you finance this deal?
Yes, 10% of the DP.
How did you add value to the deal?
I will be adding value by getting tenants on the utilities and I have a parking lot from my other investment deal that I will utilize for students to pay for parking there. I will be charging 50 dollars a month for 14 spots and will produce an additional 700 dollars per month.
What was the outcome?
Outcome was great! All parties are happy
Lessons learned? Challenges?
Ask questions during the negotiation process the more you find out the more you can work with.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
An agent and a lender.