6-unit buy and hold for cash flow

[Dennis Wasilewski]

Investment Info:

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

Purchase price: $185,000
Cash invested: $36,000

Block of 6 row homes purchased occupied, but neglected. Minor repairs and maintenance plus professional management via Slatehouse Group.

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

Buy and hold with value-add opportunities.

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

Found languishing on LoopNet. Negotiated right down to the day of closing over contract terms. :)

How did you finance this deal?

Commercial loan - 10 yr/25 am

How did you add value to the deal?

Addressed deferred maintenance and then increased rents.

What was the outcome?

Property cash flows over $1200 a month while under professional management. Happy tenants too!

Lessons learned? Challenges?

Fixing occupied units is challenging at times.

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

Team Zimmerman and Slatehouse Group!