Updated over 2 years ago on . Most recent reply
Two-Flat Long-Term Rental
Investment Info:
Small multi-family (2-4 units) buy & hold investment.
Purchase price: $275,000
Cash invested: $30,000
We were able to buy a two-flat on Madison's east side for $75k under list price. It needed a new roof and windows which scared off other buyers, and both units were significantly under market rent. We fixed it up, increased rents, and now make around $500/mo.
What made you interested in investing in this type of deal?
Long-term rentals provide an attractive combination of cash flow and appreciation if you can purchase them at the right price.
How did you find this deal and how did you negotiate it?
We noticed this property sitting on the market after 30 days with no offers. The seller had stated in the property description that they were doing a 1031 exchange so we knew they were motivated. We made an all-cash lowball offer and after some negotiation, they accepted.
How did you finance this deal?
We financed the deal through a traditional mortgage.