First deal for this investor.
Investment Info:
Small multi-family (2-4 units) buy & hold investment.
Purchase price: $65,000
Cash invested: $13,200
Sale price: $65,000
A duplex that rents for $415 upstairs, and $625 downstairs. Landlord pays gas (one meter $1010 2017). Taxes are $1025 annually. New mechanicals, roof is 3yrs old. New siding and the seller is one of my clients. It should appraise out in between $80-85k
What made you interested in investing in this type of deal?
Not a lot of cash for commercial props, opportunity, and need to get my feet wet.
How did you find this deal and how did you negotiate it?
Over coffee, and seller ready to start unloading all of his props due to retirement. This dude is a client of mine.
How did you finance this deal?
Hoping for seller financing, however, can go commercial or conventional.
How did you add value to the deal?
Used Brandons 4 square method
What was the outcome?
Cash flowing at $4092 per year.
Lessons learned? Challenges?
Debating whether to keep marketing to my clients that own a lot of SFR and 1-4 units, or go bigger?
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
no