East Chicago Triplex Big Cashflow

[Charles Simon]

Investment Info:

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

Purchase price: $130,000
Cash invested: $30,000

Purchased a large triplex. 4bed 3bath, 3bed 2bath, and 2bed one bath. Purchased with 2 smaller units rented out. Seller had rent back for 15days, took and additional 15 days and stole my first months rents.

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

"Turn key" underpriced property with high potential cashflow

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

Used homesnap to search the mls directly. Used the listing agent as my buyers agent.

How did you finance this deal?

Commercial loan 6%

How did you add value to the deal?

Cleaning out and painting the main house. Other units were rented out already

What was the outcome?

Still painting. Tons of junk left by the seller. Also just learned about 9 years of back water bills due

Lessons learned? Challenges?

Take a deposit when offering rent back to the seller
meet tenants right away
maybe look at the property prior to purchasing
Check the status of water, gas and electricity during contingency period

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

Jeff Mccormick realtor, finance of america lender