Sentimental Buy but It Cashflows Nicely!

[Caleb Drake]

Investment Info:

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

Purchase price: $144,000
Cash invested: $40,000

This is a turnkey buy-N-hold that we did very little work to. It was way under rented and one unit was vacant. We did some work to the vacant unit to update it and rented it for $150/mo more than expected. We also negotiated the rents on the other two units and brought them up to almost market rent.

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

I have fond memories of this home because my grandparents rented the lower unit while they were building their house down the block. We negotiated the price to a point it made sense, but I bought this because it was a decently cash flowing asset and had sentimental value.

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

MLS

How did you finance this deal?

Hard Money

How did you add value to the deal?

Updated the vacant unit

What was the outcome?

Higher Cashflow than expected.