My 1st 6 unit multi family after owning sfh and Triplexes.

[Jiva Segaran]

Investment Info:

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

Purchase price: $550,000
Cash invested: $125,000

Value add 6 Family property with great Cash on Cash return. Seller financing allowed for lower down payment and closing costs as well as very nice apr allowing for max cash flow. Below market rents and owner paid all utilities. I will be having tenants pay their own utilities , removing Laundry and slowly increasing rents as leases come up. Then should be a cash cow which should be able to cash out refi with a bank in a year and hopefully get most of my down payment back!

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

Have been full time flipper to save up the down payment to purchase a larger multi for the purpose of cash flow. Always liked the idea of more doors and I absolutely love making properties as efficient as possible thereby adding value. Sort of a BRRRR but without much rehab , mostly increasing rents, decreasing expenses and thereby increasing the arv.

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

Found it through an agent. Negotiated the price down but didnt low ball so I gained the seller's trust. Then asked him if he would be interested in seller financing to help reduce his capital gains, plus he makes interest. My goal was to cash flow and put as little down as possible. Then be able to cash out refi in a year or so to pull some of the equity back out to purchase another one.

How did you finance this deal?

Seller Financing

How did you add value to the deal?

Increasing rent
Having tenants pay their own utilities
Thereby decreasing expenses.

[Jiva Segaran]

We did a 3 year note with 30 year amortization at 4.125%  thus giving me a low monthly payment and giving me cash flow to increase rents, decrease expenses and do improvements so when I refi, will have quite a bit of equity to get a longer term and low rate bank mortgage.