6 Units Seller Financing

[Daniel Kidd]

Investment Info:

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

Purchase price: $450,000
Cash invested: $50,000

Quad and Duplex. These were my second and third properties that I bought on the same day different state as my first property. Seller Financed and Fully Occupied from day 1.

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

My brother actually brought this deal to me. We had been looking around the area for a while trying to buy some land zoned multi family to build on and his agent mentioned this while they were out looking at a plot one day. I am always looking for any kind of multi family and when I heard seller financing I knew we could do it at the same time as my other duplex I was under contract for.

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

I found it through my brother and his agent.

How did you finance this deal?

Seller Financing, 20% down

How did you add value to the deal?

All of the rents were raised about $100 so 6X100= $600 and we went to work getting a few things taken care of. There was an issue with the drainage so the old landlord was having a plumber come out a blow out the pipe for $100 every month. We addressed the problem for $800 and added $100 to the cash flow there.

What was the outcome?

So far it has been great. The rent has flowed like clockwork and I couldn't be happier to have found such a cool deal near my hometown to be able to close on the same day as my first investment property.

Lessons learned? Challenges?

Some of the challenges just included how to negotiate the deal. The seller was more than generous in my opinion and didn't even ask for any prorated rent so we got the whole month even though he had paid the mortgage and it was the end of the month.