Multi Unit Seller finance

[Paul Rumsey]

Investment Info:

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

Purchase price: $270,000
Cash invested: $20,000

4 unit (2bd, 1.5 bth each) long-term rental

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

I wanted to add multi-family rental to my portfolio

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

I researched the areas best suited for long-term rental. While looking at a unit next door (MLS), I met the owner of this unit by chance and started talking. Turned out they were interested in selling but were needing the income for a couple years, so we negotiated a seller financed deal.

How did you finance this deal?

Seller financed the full amount for monthly payments equal to their current income from rentals; balloon due 5 years. When balloon was due I put a HELOC on the property, paid the owner out, and took cash out for my next deal.

How did you add value to the deal?

did small renovations myself, added back decks, paint, new kitched appliances, etc.

What was the outcome?

Property appraised value increased substantially with improvements and new higher rental tenants