All Forum Posts by: Account Closed

Unfortunately, we are not from the area/state that we purchased the property, so we were not aware that this was necessary.  Now that we have learned from this experience, I would suggest contacting the city you are purchasing the property in and asking them if there are any pending issue with the property you are looking to purchase.  This is something that someone should have made us aware of, especially the Title company.  The problem was the Title company accepted a document in lieu of the occupancy report from the seller/sellers agent, that was related to a different issue.  There is likely liability on their part, but we do not have time to slow down, we just wanted to close and move on. Hope this helps!

Investment Info:

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

Purchase price: $132,000
Cash invested: $37,000

This is a 3 unit property with rents coming in at $2,325 and a mortgage payment of 900. After accounting for other expense we have a $600 net income.

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

We are looking to create passive income

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

We used a third party (will not be named) to walk us through buying multi-unit investments. They connected us with a realtor who helped us negotiate.

How did you finance this deal?

Traditional, 25% down

What was the outcome?

We closed after several hurdle and now we are in the process of stabilizing the asset.

Lessons learned? Challenges?

Original listing price was 155k, which we accepted based on trusting the realtor and not knowing any better. Appraisal came back at 132k contingent on a structural repairs. Several delays and months later, the work was complete and we were headed to the closing table. We signed at 7 am and the seller signed at 12pm. We found out after signing that there was an occupancy report that was not cleared. We were forced to use our 11k repair credit towards the occupancy cert. Run the numbers!!!

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

Would not recommend our realtor