802 Lincoln street triplex

[Nathan Caffero]

Investment Info:

Small multi-family (2-4 units) hard money loan investment.

Purchase price: $36,000
Cash invested: $14,000

3,000 square foot triplex (studio, 1 bed, 5 bed)
1 new kitchen. Removed carpet and refinished hardwood floors. Replaced rotted outside wall.
New drywall, and plumbing. Fresh coat of paint.

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

What made me interested in this type of deal is the passage residual income and appreciation.

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

Found it on Zillow. It had been on the market for close to two years. They had wanted to 50 for it. I made him an offer at 25. We ended up settling on 36,000.

How did you finance this deal?

Hard money lender

How did you add value to the deal?

Fixed a couple things. Nothing too major was wrong with it.

What was the outcome?

Tried to refinance out of the loan via conventional mortgage, but income isn’t what they are looking for.

Lessons learned? Challenges?

Hire property manager. Be more strict when hiring people. Don’t try to find a cheap contractor, they are cheap for a reason.

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

Milwaukee hard money has been amazing and patient with me as a first time investor.