First small apartment building seller financing

[Mario Mormile]

Investment Info:

Large multi-family (5+ units) buy & hold investment in Warren.

Purchase price: $58,000
Cash invested: $8,000

Small 5 unit multi family property

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

More units under one roof

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

Online marketing

How did you finance this deal?

Private money for 14% down payment, 86% seller financed.

How did you add value to the deal?

I still am! Evicted 2 tenants immediately. Replaced leaking porch roof, gutted and renovated one unit, updated/ replaced a lot of the plumbing, two units under renovations, will renovate the last two units before end of 2019.

What was the outcome?

Did not account for the lost rent from losing so many tenants so quickly.

Lessons learned? Challenges?

Have your team already built and ready to roll before closing day.