East Lansing Investment Property Deal

[Josh Nelson]

Investment Info:

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

Purchase price: $173,000
Cash invested: $30,000

Purchased via land contract off-market; 10% down, interest-only payments at 5%, balloon in 16 months. Completed cosmetic rehab for value-add. Plan to hold and rent for $2,400 - $2,600

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

I was initially interested in flipping the property.

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

Off market deal my team leader passed on to me. I first offered cash via private funds but I was told I would lose my shirt in the deal by one private money lender and the other just had really high fees so that wasn't attractive. Ultimately, renegotiated and was able to get the house on terms agreeing to seller-financing, interest only payments, 10% down, and a balloon in August 2024.

How did you finance this deal?

Savings and funds from a 401k loan.

How did you add value to the deal?

Small rehab. Replaced 90% of flooring, painted whole interior of the house, replaced light fixtures, stained deck and porch, and other repairs and upgrades.

What was the outcome?

I ended up moving into the home after fixing it up. In doing so, I was able to transition my prior primary residence of 2 years into an executive rental. More to come, in the process of finishing upgrades before moving to a new home (future live-in rehab).

Lessons learned? Challenges?

Takeaways include the contacts I made in the process. Networking is key to future success.

Challenges: this deal took six months to close because seller couldn't make it to a US embassy to sign documents. I ended up becoming a renter of the home before we closed. Seller was furious with the title company and kept faulting them for delays.