dexter linwood / russell woods

[Yelena Utin]

Investment Info:

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

Purchase price: $20,000
Cash invested: $6,000

2family residential

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

parents and i wanted to pick up a second income producing property for us to split

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

online listing. was listed at 30k, went into contract with someone else, came back on the market a week later at 25k, i offered 20k. was fully occupied at 3250/mo as a rooming house (potential rent roll was 4500/mo). kept the old owner as a property manager, since the old manager was unavailable after the sale. eventually the property manager was subbing out the collection and thus costing 40% while losing tentants (non-payment, evictions) so we fired the manager.

How did you finance this deal?

parents financed 100%

What was the outcome?

evicted all tenants, don't have capital to make improvements so I am putting it on the market and scaling down to a single fam.

Lessons learned? Challenges?

don't purchase a rooming house.

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

none good