Tax Delinquent Abandoned Multi-family property

[Mary Fraga-Kingsbury]

Investment Info:

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

Purchase price: $5,000

Tax Delinquent property. I negotiated paying the owner $5000 + taking over the past due taxes and liens.

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

This type of property has less competition. The owners are hard to find but I am good at skip searching, finding, and contacting lost owners. I have good negotiation skills with are very mandatory for this type of owner.

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

Found it by driving for dollars. The property was a couple of days from being demolished. I worked with the city code compliance officer to stop the demolition. Both owners were out of town and very difficult to find. One of the neighbors was very helpful in giving me useful information. The house had become a nuisance and the neighbors helped me locate the owners.

How did you finance this deal?

Financed with Cash and monthly payments to the tax office for delinquent taxes.

How did you add value to the deal?

I transformed the back office into an efficiency to increase the number of rents from the property.

What was the outcome?

The property is now 3 units. Two of them are rented to paying renters. The third unit is occupied by my property manager. This is his payment for his services. He manages 5 units and is managing the remodeling of 2 more properties.