First multi-family deal with a twist
Investment Info:
Small multi-family (2-4 units) buy & hold investment in Uvalde.
Purchase price: $173,500
Cash invested: $200,000
Debt free investment!
What made you interested in investing in this type of deal?
It was my first multi-family deal. I ran the calculations on BP and it cash flowed. Plus it was a weirdly laid out building & each unit had only 1 bathroom & a tiny kitchen. As I walked through it w/my wife we just knew we could make each unit a 2br/2ba unit. It had a LOT of value add potential, so we pulled the trigger.
How did you find this deal and how did you negotiate it?
It was an off market property that my realtor knew of because she had discussed listing it for the owner in the past. I was told the owner would not accept an offer less than $200k because we had floated a VERBAL offer first of $165k & that was the response we received back😀. So we waited about 3-4 weeks and this time I told my realtor to make a WRITTEN offer for $173k (we felt the owner’s realtor was going a little rogue with the verbal offer) AND my wife & I wrote a personal letter that said
How did you finance this deal?
1031 Exchange
