20 plex using other peoples money

[Wesley Hosny]

Investment Info:

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

Purchase price: $825,000
Cash invested: $165,000

Found it on Craigslist; Seller financing @6.5% for 20 years
20 Plex
Mom had just retired with $200k in retirement. Made an agreement with her if she gave me $100k I would give her $1,000/month for the rest of her life. Win/Win situation. After all expenses not counting mom payback property cashflows $1,500/month. If you want to know more just ask.

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

Had been looking for large complex once paid off that would bring in $100k/year cashflow.

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

Craigslist
Originally asking $850k. Owner had stated would bring 10% ROI. I had said the number he used for taxes was the number for what he purchased the property 15 years ago. The new tax number would be significantly higher. He agreed and took $25k off purchase price.

How did you finance this deal?

Seller financing
20 years @6.5 down with 20% down; Used some of mom's retirement for down payment

How did you add value to the deal?

Have raised rents in units where replaced tenants.

What was the outcome?

Outcome has been great. Harrodsburg has a great rental pool for affordable housing.

Lessons learned? Challenges?

Biggest challenge has been learning to handle multiple personalities interacting in a small "complex" shared space.