House/Apt in Mesa AZ

[Seth Johnson]

Investment Info:

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

Purchase price: $221,500
Cash invested: $67,000

This property consists of a 3/1 house and also a 2/1 apartment. House rents for $1,000 which is 10-20% below market, however I inherited this renter and they have been great. Once they move out, I will have a considerable expense with the turn. The apartment I renovated completely at the time of purchase and it rents for $875. This home as a 15 year loan on it, which is why the cash flow number is so low.

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

This deal penciled out pretty well, having both the single family house and the apartment rental.

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

This was an MLS deal and had been on the market for quite a long time. We were able to negotiate off of the inspection report and get the price down 30K from asking.

How did you finance this deal?

Conventional 15 year loan with 25% down.

How did you add value to the deal?

Did a complete rehab to the 2/1 apt that previously was uninhabitable.