New Investment Property
Investment Info:
Large multi-family (5+ units) buy & hold investment.
Purchase price: $265,000
Cash invested: $17,289
I purchased a small five-unit apartment on 8/26/22, with a land contract. The terms of the land contract are 10% down, interest rate of 5%, amortized over 30 years, with a balloon payment at five years. The property was purchased well under market value. Currently, the property cashflows $520/month (that includes saving 15% for vacancy, capex, and repairs), which is a 19.2% CoC ROI. Coin operated laundry will most likely be added, as there is a laundry room in the basement and the tenants are only responsible for electricity.
What made you interested in investing in this type of deal?
I have a goal of purchasing at least one property per year.
How did you find this deal and how did you negotiate it?
This property was on the market for almost two years. Because of that, we were able to negotiate a land contract with only 10% down.
How did you finance this deal?
The deal was financed by myself and my business partner.