Off-Market Gadsden Portfolio Rental Property Purchase

[Chris Mignone]

Investment Info:

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

Purchase price: $207,000
Cash invested: $213,000

Connected with a seller who had inherited multiple properties that they did not want. We were able to negotiate terms to buy 6 properties (8 doors) from them for cash at a deeply discounted price. We are currently working on getting some of the units fixed, getting some old tenants out who were paying way below market rents, etc. We will be listing the properties for sale as a portfolio closer to market value or fixing them up and renting at market and then refinancing out of them all.

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

We were interested in the relatively low acquisition cost of these properties and the potential high cash flow.

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

We found this deal through our direct to seller marketing system and we were able to negotiate a good deal because the owner had inherited the properties and really did not want to deal with them.

How did you finance this deal?

We paid cash through private money we have raised.

How did you add value to the deal?

We were able to help the seller offload occupied properties that they were not interested in keeping.

What was the outcome?

We are in the process of stabilizing the portfolio now.

Lessons learned? Challenges?

Finding a new team to help with these properties in a relatively small area.