Most recent investment
Investment Info:
Small multi-family (2-4 units) buy & hold investment.
Purchase price: $38,000
Cash invested: $142,000
I purchased both buildings for $38,000.00 then proceeded to put $142,000.00 into both properties. The back building I put $60,00.00 into it making it into a duplex that both units are rented out for $1,600.00 and $1,500.00. The front building I put $82,000.00 into it creating another duplex that rents out for $1,800.00 and $1,700.00. I now have a $200,000.00 dollar mortgage. My monthly expenses are $2150.00 a month leaving me with a monthly cash flow of $4,450.00.
What made you interested in investing in this type of deal?
All of my properties have multiple sources of income on them. This property seemed very appealing to me, because I knew I could handle all of the work that had to be done to the property as well as I knew I could get the funding for it and make it cash flow.
How did you find this deal and how did you negotiate it?
The house was for sale on the MLS. They were the roughest two buildings on the block.
How did you finance this deal?
I took a loan from a family friend of $50,000.00 for the initial purchase. I used my line of credit from another property i own and my dad used his money on the deal as well.
How did you add value to the deal?
I added value to the deal by knowing what the rent in the area went for as well as through my sweat equity. I also added value by being very flexible in my schedule to be able to take on this project.
What was the outcome?
The outcome was great cash flow as well as a lot of equity in the property.
Lessons learned? Challenges?
Manny lessons learned on this project, but I think a big one for me was the importance of not having too many bills that clog up your time with stress and lost time.