$90k Asset Acquired for $3,500

[Brandon Sturgill]

Investment Info:

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

Purchase price: $35,000
Cash invested: $3,500

Stable asset with long-term tenants acquired through a purchase money mortgage. We agreed to 10% down on a 48-month note at favorable interest rates and fair terms. Lesser quality comps are selling on the same street for $90k+. Total out-of-pocket was less than $4k and monthly debt-service is $350. This one will be paid off in 2-years. It's on a quiet cul-de-sac right next to an elementary school.

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

We specialize in small multifamily acquisitions

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

Direct mail campaign. Negotiation directly with owner

How did you finance this deal?

Purchase money mortgage (seller-carried)

How did you add value to the deal?

Comparable market analysis

What was the outcome?

$3,500 out of pocket for an asset that cash flows $1,250/mo and will be paid off in 2-years

Lessons learned? Challenges?

One of the tenants dies shortly after acquisition. Thankfully her grandson assumed the lease and has been a great tenant