Multi-Family - Buy & Hold - 30%+ ROI

[Alisha Nightingale]

Investment Info:

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

Purchase price: $330,000
Cash invested: $50,000

Purchased at $330,000 - Gross cash flow was $3,035 NOW $4,525
Owner carry note
$20,000 down
5% interest
5 year balloon
$30,000 of upgrades

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

Buy & Hold
Cash Flow
More doors to spread risk

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

Found on the MLS, negotiated on our own behave as Realtors to secure an owner carry contract.

How did you finance this deal?

Owner carry.

How did you add value to the deal?

Found the right terms for the seller to still receive cash flow.

What was the outcome?

Working on splitting a larger unit into two separate units bringing the rental income from $1,200 to $1,600 - $1,800.

Lessons learned? Challenges?

Sweat equity pays off, especially in the beginning with no major capital sources.
Keep rents at market rate.
Owner carry contracts can help when you are not traditionally financeable in the beginning of your investment history.

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

Seller had their own representation and we negotiated for ourselves as Realtors.