Updated almost 5 years ago on . Most recent reply
Cash Flowing duplex in Lincoln, NE
Investment Info:
Small multi-family (2-4 units) buy & hold investment.
Purchase price: $210,000
Cash invested: $21,000
Seller financed duplex in great area of Lincoln, NE.
What made you interested in investing in this type of deal?
Looking to expand into more multifamily properties.
How did you find this deal and how did you negotiate it?
Relationship from Direct Mail. Gave the seller the price she wanted if she would finance the purchase.
How did you finance this deal?
Seller carry 90% of purchase price.
How did you add value to the deal?
Cleaned up the units and bumped rents roughly 50% after original tenants left.
What was the outcome?
A great cash flowing asset that I didn't need to qualify for a loan on and with some built in equity as the market has increased from when the original price was negotiated.
Lessons learned? Challenges?
Make sure to get everything in writing and that the seller is aware of everything in the purchase agreement. Had a situation where the Seller thought the closing costs were completely covered by myself but the purchase agreement stated they were split. I decided to cover them to maintain the relationship as there are future deals at stake but was a tense week period of time for the Seller.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
None.
