A casual encounter turns into 5k a month in profits!

[David Kirkpatrick]

Investment Info:

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

Purchase price: $1,250,000

While attending a church function I met a man that had some multifamily units. He mentioned that he and his wife had just bought a camper and had plans to travel. After a month or so of listening to the Bigger Pockets Podcasts I got the motivation I needed to call the man and requested a meeting. Within 8 Months we had the deal worked out and I settled on the properties. 7 Properties, 19 Units. $16,840 in Monthly rents, 11+k in expenses and rental payments, $5100 in cash flow PROFITS!

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

Hearing others talk about "Financial Freedom" intreagued me as I have always worked my butt of for everything I have. I began listending to podcasts and studying what others were doing and decided it was worth a shot!!

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

Met a man at a local church function and began talking to him about life and family. He mentoned he had rentals and wanted to get away from them to travel. After months of discussing his needs and our desires in owning property we worked out a deal. I asked him what he needed out of the sale and created terms that would get him what he needed. Negotiated over coffee and breakfast over about 2-3 months and then began working on the actual legal documents and structuring our deal.

How did you finance this deal?

100% Owner Financing - GO PACE MORBY!!

How did you add value to the deal?

We will value add by doing improvements to the properties.

What was the outcome?

Positive Cash Flow From Day 1!

Lessons learned? Challenges?

Properties produce good income however they need work as they are older and require attention. So far we are spending about 3 or 4 hours a week working on imprevements.

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

No, Did this all by myself and with the help of the Bigger Pockets Community!!