All Forum Posts by: Jiva Segaran

We did a 3 year note with 30 year amortization at 4.125%  thus giving me a low monthly payment and giving me cash flow to increase rents, decrease expenses and do improvements so when I refi, will have quite a bit of equity to get a longer term and low rate bank mortgage.

@Andy D. Curious to hear how you made out? Im in the same situation pin my 6 unit in ma.

Investment Info:

Large multi-family (5+ units) buy & hold investment.

Purchase price: $550,000
Cash invested: $125,000

Value add 6 Family property with great Cash on Cash return. Seller financing allowed for lower down payment and closing costs as well as very nice apr allowing for max cash flow. Below market rents and owner paid all utilities. I will be having tenants pay their own utilities , removing Laundry and slowly increasing rents as leases come up. Then should be a cash cow which should be able to cash out refi with a bank in a year and hopefully get most of my down payment back!

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

Have been full time flipper to save up the down payment to purchase a larger multi for the purpose of cash flow. Always liked the idea of more doors and I absolutely love making properties as efficient as possible thereby adding value. Sort of a BRRRR but without much rehab , mostly increasing rents, decreasing expenses and thereby increasing the arv.

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

Found it through an agent. Negotiated the price down but didnt low ball so I gained the seller's trust. Then asked him if he would be interested in seller financing to help reduce his capital gains, plus he makes interest. My goal was to cash flow and put as little down as possible. Then be able to cash out refi in a year or so to pull some of the equity back out to purchase another one.

How did you finance this deal?

Seller Financing

How did you add value to the deal?

Increasing rent
Having tenants pay their own utilities
Thereby decreasing expenses.

@Marie Fries I recommend Jeff at Star Mortgage is a local broker who will shop around a few banks for you.

Thanks @Brian Burke will do . Merry Christmas!

Ive been searching for examples like this on how to structure buy and hold, add value, exit 1 year brrrr type deals. This thread was very helpful. Thanks @Brian Burke , @Joe Villeneuve and @Michael Bishop

Im in a wierd situation where I have the deals and the investors , just need to put it together where its worthwhile for me as well as the investors.  Any other resources where I can get more ideas and examples of ways to structure investor multifamily deals?

Perfect! Ive been trying to figure out a win win situation for this type of relationship as I have investors in HI looking to use my flipping experience to brrrr multifamily properties here in MA. Any insight on how title is held on initial purchase? 

This is exactly where I was headed.  Thanks for the inspiration. Ah ha moment. 

Aloha! 

@Isi Nau Yeah I still have the India Cafe and Super Gyros restaurants & Kiosks. Can check them out the the Navy Exchange food court if you are ever near the airport.  My UH one is closed for summer and Kailua is kinda far :)

Aloha!