4 unit apartment in Iowa

[Michael Chilton]

Investment Info:

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

Purchase price: $53,000

My first rental property! 4 unit apartment in a small Iowa city. Purchased for $53,000 with only $3500 down. Net cash flow is $300/ month after all expenses, repairs, cap-ex, and vacancy.

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

Low cost opportunity to generate cash flow.

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

I mentioned to a co-worked that I was looking to invest. He had this property for ten years and was tired of dealing with tenants. After looking at the deal, his price felt fair. I think I could’ve negotiated a little, but the money made sense and I didn’t want to get in an awkward scenario negotiating with a co-worker without an agent.

How did you finance this deal?

Commercial loan through a local bank.

[Michael Chilton]

@Austin Davis Absolutely. I’ve wanted to do this since reading “Rich Dad, Poor Dad” over 12 years ago. I don’t think it will take as long to get the next one. I’m already searching.