My first deal way back then

[Amere Mack]

Investment Info:

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

Purchase price: $50,000
Cash invested: $120,000

Changed 4 unit apartment building into rooms for rent. 3 units turned into 3 rooms for rent each unit, that includes a shared kitchen and bath for each unit. The last unit kept as personal unit until last year and then rented it out also for 600 for full apartment. Building brings in 6000 month with a waitlist of people looking to move in.

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

I was looking for tenants to pay for the property and live for free and it turned out way better than I thought it would.

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

I saw a Craigslist post for sale contacted owner they agreed to owner financing if I could pay it off in 3 yrs. Which is why I went with rooms seeing as they would generate more income to pay off the property faster.

How did you finance this deal?

This was an owner financed deal at 9.9% paid off in 3 yrs. Buy using the income from 9 rooms and staying in the other apartment and managing the property myself.

How did you add value to the deal?

Property was renovated new electrical/plumbing/HVAC/windows and flooring paint. Previous owner had put on a new metal roof so I only had to do everything else.

What was the outcome?

Property was renovated and started renting after 120 days

Lessons learned? Challenges?

Tried using regular help but found that cost me more on having to go back and fix the mistakes that where being made. Sometimes cheaper is not better if your paying for the same thing twice. Checking references and go buy and look at the work they say they performed will save you in the long run.

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

This was my first deal and didn’t have any lenders, agents or contractors to lean on but pushed the deal to the finished line.