Big lessons in renting to low-income tenants

[Tim Sulzberger]

Investment Info:

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

Purchase price: $50,000
Cash invested: $2,000
Sale price: $50,000

Run-down, 2 story, 4-plex.

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

No money down with seller contract.

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

I listed it as a realtor and bought it after the listing expired.

How did you finance this deal?

No money down contract with the seller.

How did you add value to the deal?

Remodeling all 4 units.

What was the outcome?

Low life renters who tore the place up, punched holes in the walls, and ripped me off.

Lessons learned? Challenges?

Never rent without a substantial security deposit, a good lease agreement, and assertive management practices.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

No