Lee Road Cottages 4 Houses on 2.7 Acres

[Bryan Mitchell]

Investment Info:

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

Purchase price: $155,000
Cash invested: $53,000

2.7 acres with 4 occupied 1/1 cottages and one .25 acre empty (previously a mobile home on it).

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

The property cash flowed, the price was based on the current houses (4) and did not account for future value. After rehabbing the 5th house and possibly putting a mobile home or two on the front lot, I saw the FUTURE value.

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

I was working with a realtor who was showing me house over a few months when the sale of this property fell apart for another buyer. I bought it before she could list it.

How did you finance this deal?

Commerical loan

How did you add value to the deal?

Yes, rehabbed a 5th house not listed in the sale since it was uninhabitable.

What was the outcome?

Listed home at the end of July.

Lessons learned? Challenges?

Facing the replacement of a new roof that did not come out in the inspection report.

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

Message me.