Cash flowing from day 1

[Christopher White]

Investment Info:

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

Purchase price: $350,000
Cash invested: $70,000

Do you homework before you purchase.

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

The average price of acquisition in the area for the square footage was about $250,000 - $300,000 depending on condition. This property was already fully renovated nicer than what I would have done and was setup perfectly for room rental platform allowing me to cash flow from day 1.

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

FB Marketplace. This property was originally a duplex however setup as a single family. An out of town investor bought this as a fix n flip however during renovation realized he could not convert it back to a duplex because it had already been zoned as single family by the city so it wasn't an easy property to dispose off due to only being eligible for cash, no ratio DSCR, or Hard Money and the investor's hard money loan was coming due so I was able to get it for 10% less than asking.

How did you finance this deal?

No ratio DSCR Loan

How did you add value to the deal?

Put it on Padsplit platform

What was the outcome?

Cash flow 35% over long term tenants

Lessons learned? Challenges?

Not all DSCR loans are equal