My no money down investment

[Lee Gierszewski]

Investment Info:

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

Purchase price: $235,000
Cash invested: $1

This property is a 4-plex we purchased for 235k by refinancing a property we had purchased a little over a month before. It was completely renovated, but all units were vacant which probably explains why the asking price seemed so low.

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

The numbers we figured we could get for rent made this a deal we had to have.

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

We found this deal on the MLS. They had an open house, but we missed it. I contacted the selling realtor and asked if I could do a showing as I am also a realtor and he said sure and that him and the seller would be coming down as well. When they arrived, we negotiated right in the house. We said we wanted it. The asking price was 242k, we offered 235k and it was agreed upon. We also knew the seller so it made the negotiations a little easier.

How did you finance this deal?

We refinanced a recent purchase appraised at 163k and pulled 130k out of that deal. $40k to pay off existing loan, $47k to make down payment on this property. $10k for me and my partner, 10k went to taxes and the remaining 13k or so into the our business checking account.

How did you add value to the deal?

So far we have made a few repairs and have paved the parking lot. We are looking at adding garages this summer.

What was the outcome?

So far this property has been our best property in our inventory regarding cash flow. It consistently brings in around $1560/mo in cash flow.

Lessons learned? Challenges?

Go for it. If you believe deep in your heart, and your numbers that a property is good, just do it! When we got this property under contract, we had no idea where we were going to get the money to pay for it, but when you need to figure it out, you will if you have the drive.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Yes, I am a real estate agent, My partner is a property manager, our lender I would recommend to anyone looking to invest.