Dream Deal Years in the Making

[Andrew Severino]

Investment Info:

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

Purchase price: $439,812
Cash invested: $10,709

3 unit residential property in desirable Uptown New Orleans neighborhood, always rented, good tenants. Attracts young professionals, medical students and graduate students. 100% occupancy.

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

I've owned many similar properties in area, For many years have had zero vacancies on most of them, I knew we would attract desirable tenants which is half the battle.

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

This was a unique situation. I helped an out of state client purchase the property, and I managed it for him for about 4 years. He wanted to sell to do something out of state, I brokered the sale with a former partner of mine as the buyer and I had a creative deal with him where I took an ownership interest as well in exchange for management services and a value add project that added a third unit to the property. Then I bought him out with another partner or over 20 years.