Investment Info:

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

Purchase price: $22,500
Cash invested: $37,000

This property was acquired via a land contract for $22,500 and put another $14,500 into rehabbing the interior and replacing a waterline. The deal was structured as a $1,000 down payment and $500 for the monthly payment with no interest until the balance is paid in full. My plan is to continue to wholesale real estate to aggressively pay off the balance before January 2020.

Building relationships with tired landlords has been crucial to my start in real estate investing.

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

I had been investing in single-family rentals for a few years and wanted to start scaling my rental portfolio. This property was the first small multi-family property that I was able to negotiate seller financing on that would also come with a ton of equity.

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

Found this deal through a family friend that has been investing in residential real estate for several years. I believe I was able to negotiate favorable terms because the landlord was liquidating his entire portfolio and he had already not been receiving rent from the 2 units on time, if at all.

How did you finance this deal?

Used income from wholesaling real estate for the down payment and repairs.

How did you add value to the deal?

By renovating the interior of the property and getting paying tenants in the units. S/o to my property manager.

What was the outcome?

Still in the contract but everything has been running smoothly thus far! The $500 monthly payment has helped because one side is making the payment for me. The units are in a Designated Opportunity Zone but is still a C class neighborhood so I would not be surprised if either of the units becomes vacant within the next 6 months.