Investment Info:

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

Purchase price: $675,000

Some great neighbors at one of my properties approached me about selling their three to me. I made gave them three options in January of 2019. They felt they were all too low, or too complicated, and decided to list them. After not selling them by June, I reached back out to them. They had already retired and were transitioning to their new phase of life. They were more motivated. After getting creative, looking beyond seller financing, and potentially partnering on them and buying them out through a refinance, the sellers ultimately agreed to drop the price and seller finance for 8 months, with nothing down, so that I can refinance the properties at 6 months, pay them off and own the three duplexes.

It drove my wife crazy, but patience and creativity paid off. I'll list some units as short term rentals and others as traditional rentals. This transaction almost doubled my portfolio in value and took us to 10 properties and 19 units in total.

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

The properties were very well maintained and in the same neighborhood as others I own.

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

My neighbor approach me about buying all three and making their transition to retirement easier.

How did you finance this deal?

In the end, seller financing. 8-month term, interest only. I'll refinance in 6 months, and pay them off.

How did you add value to the deal?

Furnishing the units and marketing them via AirBnB.

What was the outcome?

It worked perfectly in the end. As soon as I had them listed, I received 3 bookings the same night. It's a no brainer for us. We'll refinance them in 6 months, and make the seller happy and whole.

Lessons learned? Challenges?

Patience, understand the sellers' needs and motivations, and creativity.

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

No.