Blue Bridge Properties 1st Deal
Investment Info:
Small multi-family (2-4 units) buy & hold investment in Grand Rapids.
Purchase price: $115,000
Cash invested: $45,000
2 Unit Home
Unit 1 (Downstairs): 3 Bedroom 1 Bath
Unit 2 (Upstairs) 3 Bedroom 1 Bath
New Furnaces for both units
Added glass block windows and cleaned basement (dump zone) for future usable space
What made you interested in investing in this type of deal?
This was our first deal - Multifamily/Cash Flow interested us most. The numbers looked too amazing to pass up. This part of the Grand Rapids neighborhood is improving (more investments, more new businesses).
How did you find this deal and how did you negotiate it?
MLS - Used a Realtor - Seller was very difficult to negotiate with; would not budge on price.
How did you finance this deal?
Conventional Loan (75%) - Personal funds for down payment and rehab
How did you add value to the deal?
New furnaces.
We aren't slumlords - improved tenants quality of life by ensuring they had heat, nonleaking plumbing, and functioning doorknobs/locks.
What was the outcome?
continuing to cash flow at the projected rate
Lessons learned? Challenges?
Challenge: Seller not negotiating even after inspection report showed areas needing immediate attention (for safety reasons)
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Yes - we have partnered with one agent to facilitate our Grand Rapids area deals - Kristin Moore Keller Williams