Updated over 7 years ago on . Most recent reply
I have purchased my first 4 unit
Investment Info:
Small multi-family (2-4 units) buy & hold investment in Dothan.
Purchase price: $135,000
Cash invested: $27,000
This is a four unit that needs some work. I will be reinvesting the cashflow for a while to make repairs. I also did not get favorable bank terms so I will be refinancing as soon as possible.
What made you interested in investing in this type of deal?
I am building a portfolio for my retirement
How did you find this deal and how did you negotiate it?
I called property management companies and asked if any of the owners were wanting to sell their small multi-families.
How did you finance this deal?
I used lines of credit. Prior to this, I refinanced a duplex to clear my lines of credit so that I would have them available for future deals.
How did you add value to the deal?
My value add will com in way of repairs to the property and in the relationship with the seller.
What was the outcome?
I was able to show that I can close deals and I am already saving up for my next deal.
Lessons learned? Challenges?
I thought that I needed a realtor in the area (out of state purchase). The realtor was my Power of Attorney on the prior deal so I offered to pay his commission if he would be my boots on the ground and Power of Attorney again. The bank said that I could not have a power of attorney on this deal so I paid the commission for very little work from realtor. He looked over my contract and that was all that he did. I kept my word and paid the commission.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
No. Off market is the way that I intend to proceed on my next few deals.
