4 plex partnership off market

[MIlton Monzon]

Investment Info:

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

Purchase price: $272,000
Cash invested: $112,362

Off Market 4 plex. Got with a partner. I found the deal, he supplied down payment and closing cost, I supplied rehab cost and managing the contractors. 112,362 of cash invested includes 20% downpayment. With all repairs made new value of home is 350k+. This asset will help offset my gains from the recent flip and provide extra cashflow.

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

Partnership and tax write offs.

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

Off Market with another wholesaler whom i had worked with.

How did you finance this deal?

RCN Capital 30 yr fixed loan. 20% down.

How did you add value to the deal?

Remodel of all units, brand new roofs, new tenants screenings.

What was the outcome?

Strong 4 plex with great units in downtown New London.

Lessons learned? Challenges?

Wish i had negotiated the price more with the wholesaler and gone lower. Rehab amount was more than expected and even though all that is now equity in the deal it leaves me with money stuck in the deal rather than money i can continue to use elsewhere and invest. Either gone lower in price or walked away. Still a good deal with at least 10% COC ROI.

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

Brenda Engel agent from New London Ct and RCN Capital for a fixed 30 yr loan.