Small multi-family (2-4 units) buy & hold investment.
Purchase price: $120,000 Cash invested: $12,000
I purchased a two-unit property in small-town New Zealand. It was formerly used for government housing. I wrangled the paperwork, divided the property into two titles, and sold off one unit. Not only did I pay off the entire loan, but I also had $40,000 leftover and a rental property producing weekly income (covers my petrol bill!).
It was in a town called Tokoroa - a former forestry town. Units were timber. I use the word "dividing" because nothing physically changed for the properties - only the legal titles. I was fortunate in that they both had separate services (electricity, water meter) and a proper firewall between the units.
Here's a rough breakdown of costs:
- fire inpsection report $800
- council submissions (this can vary wildly) $3300
- beers to keep things moving and costs down $240
I'm fortunate in that the building inspector for the council is my friend's brother-in-law. In small town NZ this can affect the pricing significantly. This has been my only deal so far. I'm looking hoepfully for someone more knowledgable who's willing to help me invest in USA for cashflow?