Low income investing... not section 8

[Charles Loughin]

Investment Info:

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

Purchase price: $49,500
Cash invested: $63,000

Buying multi family buildings below market value for the highest ROI while still providing quality to my low income tenants.

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

It would be unlikely that I would have ore than one vacancy at a time and a good ROI.

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

After reading all the real estate books I could fined I compiled a lists of all 2 to 4 unit buildings (about 20) in the target area. I then compared them in a spread sheet, eliminated any that fell outside of my criteria and did a walk-thru of the remaining. I was able to illuminate all but two. I then made offers on those and one was excepted.

How did you finance this deal?

I used the equity in my house to finance my first deal.

How did you add value to the deal?

After the first year of paying for fuel oil to heat the building I switched to Natural gas and cut the heating bill in half.

Lessons learned? Challenges?

I started with a property management company that basically took all the profits and mismanaged the property. I let that drag on too long. After I started managing myself I have long term tenants and I actually have net income.

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

I always get a "Buyers Agent"