1 of the 5 properties I got in 2007 - basic 2 unit - Erie PA - Sean Maloney

[Sean Maloney]

Investment Info:

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

Purchase price: $36,000

1 of the 5 properties I got in 2007 - Erie PA - Sean Maloney

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

The numbers looked good and I was aggressively buying duplexes at the time.

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

The same relator that I bought my first property from a year before either brought it to me or I saw it listed and asked him to get things rolling . One way or another it was on the MLS at the time.

How did you finance this deal?

Same local bank but with a loan based on some equity in the property so no down payment was needed. The rate was high at 10% but the numbers worked and that is what was needed to get the deal done at the time.

How did you add value to the deal?

Lots of improvements and keeping it rented with long term tenants .

What was the outcome?

It's now paid off and has good cashflow. Looking to wrap it into another deal at some point to use its equity as the collateral for a binger deal.

Lessons learned? Challenges?

Not a good area for appreciation but good for cash flow. Should have refinanced at some point to get better returns.

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

Same local realtor as my first deal and same local bank that I would no longer recommend.