Side by side 2 unit - Creative finance - Erie PA - Sean Maloney

[Sean Maloney]

Investment Info:

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

Purchase price: $48,000

Side by side 2 unit. Creative finance deal with owner. In great condition on a corner lot.

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

Having it be creative finance and the owner being willing to meet my requests.

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

The deal came to me from my plumber. we were working on a project and he said....you seem to be doing well with all your rentals would you want another one. we had a deal talked up in a few min. and I went to look at the property ASAP. We did owner financing on a 15 year term and I negotiated a new roof done by my contractor tied into the financing. I also negotiated taking over the property about 90 days before closing. This allowed me to get good tenants in place and collect rents and deposits

How did you finance this deal?

Owner financing 15 year term. No money down and all my closing costs paid by tenants due to our agreement for me to manage and place tenants in to the property be fore closing.

How did you add value to the deal?

New roof, placing tenants, and just maintaining the property. It was in perfect condition to start.

What was the outcome?

Still own it. Has gone up in value and is in a better part of town. Planning on holding it and maybe doing a short term rental with it in the future if I have one of the long term tenants move out.

Lessons learned? Challenges?

Everyone and anyone could be your next deal even your plumber. I had the challenge of one of my original tenants dying in an odd situation. The situation was not at the property but it did cause some different challenges that needed to be dealt with for a few weeks.

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

Just my attorney to write up the deal and do the closing for me.