Latest Acquisition - College rental

[Marsay Winder]

Investment Info:

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

Purchase price: $40,000
Cash invested: $10,000

6 bedroom home used for college rentals (in my city we can only rent out 4 rooms). Purchased through owner financing deal. Added a new roof, termite treatment/inspection and then on to paying off the original owner after refi.

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

Purchased this deal from a retiring investor who I have done one other deal. I was interested in this deal because of the cash flow (already rented out) and the fact that the property had an attached vacant lot that I can build another property on down the line. The owner also has a 25 unit apartment complex that he is looking to sell down the road that I am very interested in. Maintaining our relationship through good deals and creating win-wins.

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

I found this deal through maintaining our relationship from a 4 plex purchased 2 years ago. I negotiated the price down by doing my diligence through inspections and estimating the amount of maintenance. The owner really wanted to liquidate his portfolio and I was able to negotiate owner financing with 10K down and interest only payments with a one year payback period.

How did you finance this deal?

Owner financing with interest only payments for one year to give me to time to refinance the deal.

How did you add value to the deal?

I immediately added a new roof and am doing some delayed maintenance.