Buy and Hold - Doors Numbers 1 and 2

[Nathan Gruetzmacher]

Investment Info:

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

Purchase price: $500,000
Cash invested: $110,000

2-unit that we bought with proceeds from a live in flip.

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

The simplicity and higher cash flow returns from multi-families.

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

On the MLS. Not much negotiation.

How did you finance this deal?

Conventional financing

How did you add value to the deal?

Completely renovated the unit we occupied. All ourselves. Other unit was already renovated and occupied.

What was the outcome?

Very solid investment and hard to find cash flow.

Lessons learned? Challenges?

We sold a single family that we did a live-in-flip on. Huge benefit to negotiating rent back (first month free) into the sell of our home. We had difficult tenants occupying the unit we wanted, so we wanted time to get them out. We offered $5,000 cash-for-keys, and they were out on the first of April. We then had a whole month to tackle the major parts of the renovations before we moved all of our stuff, because we were able to rent the place we sold for that first month. Big benefit

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

Absolutely, if requested.