Second Property, First one out of state

[Jon Hill]

Investment Info:

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

Purchase price: $165,504
Cash invested: $12,500

Property was purchased through a partnership. My partner brought the financing along with being the property manager. I brought the knowledge along with finding and analyzing the deal. It was a great way for each of us to get into a property. We are renting one half of the duplex to a pair of college kids close to the property.

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

It allowed me to increase cash flow while keeping the up front cash low

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

We found the deal on Zillow and used a connection I had to have an agent negotiate on our behalf

How did you finance this deal?

Through a partnership

How did you add value to the deal?

Bring the agent, experience and finding the deal

What was the outcome?

We were able to purchase another property that is providing cash flow

Lessons learned? Challenges?

We inherited a tenant that tried to not pay prior to moving out. Ended up having to give notice and non-renew her lease. Was a challenge but grateful to learn from experience.