First purchase in Topeka, KS

[Holton Witman]

Investment Info:

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

Purchase price: $40,000
Cash invested: $500

Three unit multifamily house that had been well maintained. Updated the vacant back unit and rented it out. It is full and brings in $1,433 every month.

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

It was a banger of a cash flow deal. The property isn't likely to appreciate much but has good probability of staying rented. We will hold this property for a long time.

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

I can't remember exactly how we came upon this property but when we saw it I knew we needed to buy it no matter what.

How did you finance this deal?

Conventional, however, we worked out some creative financing for the downpayment.

Lessons learned? Challenges?

This unit came with two tenants. One left immediately after we took possession of the property and trashed it. Don't ever count on tenants staying after the change of ownership even if they seem like they would.

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

Pamela Flemming