Updated over 6 years ago on . Most recent reply
1st Rental Property Purchase
Investment Info:
Small multi-family (2-4 units) buy & hold investment in East Grand Forks.
Purchase price: $199,000
Bought a 4-plex slightly below market value from well known long time owner. Many new updates, very well taken care of, long term tenants.
How did you find this deal and how did you negotiate it?
I ran into my parents neighbor at my sisters wedding and asked him if he was interested in selling his 4 plex. He told me he was in the process of possibly selling it to someone else that was interested but said he would rather sell it to me if I wanted it. He had already agreed to a price with the other guy so I agreed to that price.
How did you finance this deal?
80% Commercial Adjustable Rate Loan - 5 yr fixed rate.
20% Home Equity Loan - Rolled closing costs into this loan.