Two Townhomes in One Deal

[Mike Hodges]

Investment Info:

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

Purchase price: $105,000
Cash invested: $25,000

In 2016, I saw an ad on Craig's List for these 2 townhomes. I met the guy and wrote an offer on the hood of my car. Both homes were currently rented, with a total $1,600 per moth. Over the years with rental increase, today these both rent out for $1,350 each for a total of $2,700. There are monthly mortgage, taxes, HOA dues and insurance expenses each month, however this still generates great cash flow every month.

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

Produce month cash flow.

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

Saw an ad on Craig's List, I negotiated the deal personally on the first meeting. The seller was in need of selling.

How did you finance this deal?

My local community bank that I had a relationship established with helped me finance this deal.