Duplex in Gloucester City NJ - A True No Money Down Deal

[Mike Bonadies]

Investment Info:

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

The Deal: This was a duplex that my partner owned already. He had about 60% of the properties equity and he wanted to refinance it to get capital out. Because we had a strong partnership in other businesses and my "bank-ability" was higher than his he offered to partner with me on the property during the refinance. I became the PG, we would split the cashflow 50/50 and he would receive all the cashout of the refinance minus the cost to close the loan.

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

What Made It Interesting: This is a true example of gaining a property with no money down. It was done through relationships and trust. My partner and I own 19 doors together before this and a property management company. He brought me in because not only did I provide additional strength to the underwriting but also to the operation of the property. I got a cashflowing property for no money down.

How did you finance this deal?

The Financials: The financing is vanilla. Its a 30 year fixed rate LLC loan at 6.5%. The ARV was $115k so we have a mortgage for $86k. The duplex is a 2/1 & a 1/1 with the total rent roll being $1950. After taxes, insurance, etc... we are making about $700 a month between the two of us.