Small multi-family (2-4 units) buy & hold investment in Marshalltown.
Purchase price: $53,000
My first rental property! 4 unit apartment in a small Iowa city. Purchased for $53,000 with only $3500 down. Net cash flow is $300/ month after all expenses, repairs, cap-ex, and vacancy.
What made you interested in investing in this type of deal?
Low cost opportunity to generate cash flow.
How did you find this deal and how did you negotiate it?
I mentioned to a co-worked that I was looking to invest. He had this property for ten years and was tired of dealing with tenants. After looking at the deal, his price felt fair. I think I could’ve negotiated a little, but the money made sense and I didn’t want to get in an awkward scenario negotiating with a co-worker without an agent.
How did you finance this deal?
Commercial loan through a local bank.
Nice work! The first one is the hardest one to pull the trigger on.
@Austin Davis Absolutely. I’ve wanted to do this since reading “Rich Dad, Poor Dad” over 12 years ago. I don’t think it will take as long to get the next one. I’m already searching.
Congratulations on your first rental! We just purchased our first as well. Very comparable to your property .. a low cost 5 unit multifamily in Indianola that cash flows well. I also recall reading "Rich Dad Poor Dad" about ten years ago as a young college student. I wish it was as meaningful then as it is now! I had to crush some limiting beliefs first I suppose ... but hey, better late than never. Once you get the first deal under your belt, it is definitely exciting to start searching for the next. Best of luck on your next venture!
@Michael Chilton Great job man! So you negotiated the deal without a Realtor. in what part of the process did you use one?
@Michael Chilton Congratulations! It's so satisfying to get your first deal done and done well. I'm still looking for a deal on a multifamily. So far I've only done one flip and I'm working on my second.
@Paul Bloomfield Thanks! I didn’t use a realtor at all during this transaction.
Great work! Fellow Iowan here looking for my first property as well.
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