First REAL investment deal

[Adam Morgan]

Thanks everyone for all the help and info on this site. Today I closed on my first "intentional" investment deal. I am already an accidental landlord (and out of state), and an accidental raw land investor (from a move after my time in the Navy that didn't go as planned). Ran across a good deal on a 4plex with seller financing while looking for a flip project. Building has 4 one bedroom apartments that all need the carpets ripped out, new kitchens and complete paint jobs. Seller wanted 15k down but we agreed on 5k down and I would put in 3k rehab on each unit at the first vacancy. Convinced him I would rather put the down payment directly into the property and mentioned if he did happen to get it back, it would be a completely renovated building. 90k total plus 12k rehab over 4 units and a year or two timeframe, rents out for 400 per unit now. I think with a rehab I can bring this to 420-450 per unit. (2 have car ports). Not exactly 2% but close. 

Thanks again for all the motivation!!!!

[Adam Morgan]

@Alisa O. I actually found it on craigslist he. I did a search for owner financing. I bought some land a while back on owner financing and knew it was probably the only way I was going to be able to structure a deal right now. We used a standard deed transfer and note, but I have used a land contract in the past were the seller kept the deed in his name. I presented 3 offers because I didn't really know what the seller wanted. Asking price with nothing down and a low interest rate, a lower price with 2k down and 1 point higher interest, and a much lower price with 2k down and 3 points higher interest rate (that I would have refinanced in a year after showing a track record on the property). He took asking price with little down and a low interest rate.