My 3rd investment property

[Patrick Davis]

Investment Info:

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

Purchase price: $60,000
Cash invested: $15,000

This property was in really bad shape when I purchased it. The seller had owned it for 20 years and used a known terrible management company who left it in bad shape.

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

This was still a great deal

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

This one was brought to me by an agent who was trying to unload an entire portfolio from an owner who had neglected approx 20 properties.

How did you finance this deal?

This was purchased with an owner-held mortgage.

How did you add value to the deal?

We repaired the exterior (shingles and roof), then painted the exterior. We gutted a bathroom and did flooring, paint, etc in both units.

What was the outcome?

We rented this one for a very high rate and have a couple of good tenants.

Lessons learned? Challenges?

I learned to never keep the tenants we inherit from a crappy owner/property manager.

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

I worked with Todd Danni on this one as well.