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Updated 10 months ago on .

User Stats

9
Posts
3
Votes
Jonathon Morris
  • Investor
  • Milwaukee/Chicago
3
Votes |
9
Posts

Long term hold

Jonathon Morris
  • Investor
  • Milwaukee/Chicago
Posted

Investment Info:

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

Purchase price: $252,000
Cash invested: $65,000

PP 252k
5/5@ 5.75%
Rehab cost- 20k

ARV 350k-370k

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

Looked like a quick cosmetic rehab I could do while living in a new area.

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

MLS
Originally had multiple offers.
Fell out of contract 2 weeks later and I immediately got in touch directly with listing agent. They sent over inspection report. Negotiated 20k off the top without contingencies as already walked it and report didn’t show anything I didn’t already saw.

How did you finance this deal?

5/5 ARM
Conventional

How did you add value to the deal?

Bought it under market price.
Bought in a market with upward trajectory.
Previous owners created a DIY nightmare. I went in, fixed drywall, painted walls white, paint cabinets, corrected floor slope and put down hardwood. Paint exterior.

What was the outcome?

6 months- created 100k-125k forced appreciation.

Lessons learned? Challenges?

Direct to listing agent.
Everything is negotiable.
Cut out more middle men and error in communication.

Less middlemen= more transparency