Small multi-family (2-4 units) buy & hold investment in Laconia.
Purchase price: $160,000
Cash invested: $60,000
This has been quite the project. I purchased this property site unseen. My agent viewed it for me and i looked at photos and inspection reports, and I decided to go for based on potential cash flow and cash on cash return. The craziest part was also working on my first flip at the same time. I highly recommend not doing this a first time investor. Everything imaginable has gone wrong. Finally I have the first floor rented and I am three weeks from renting the second floor. The third floor which is my true money maker has to wait until spring. I would love to share more details if anyone is interested.
What made you interested in investing in this type of deal?
I love the ability to invest with cash flow and the ability to pull money out to move on to the next project.
How did you find this deal and how did you negotiate it?
I found this on the MLS. It was well under market value as it was in rough shape, and I only negotiated a concession for the clean out from the hoarders.
How did you finance this deal?
How did you add value to the deal?
Full tear out and rehab.
What was the outcome?
Still in the process.
Lessons learned? Challenges?
Pay closer attention to the electrical and plumbing details when doing initial inspection. And better understanding of timelines associated with each step of the process.
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