Small multifamily close to home

[May Castillo]

Investment Info:

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

Purchase price: $119,000
Cash invested: $22,000

3 units (one duplex, and

one separate unit) right next to each other on the same block.

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

Brandon Turner's webminars

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

Off market, through a wholesaler. We analyzed it on the BP rental calculator and we realized that we could get a monthly cash flow of around $600 with COC of 32%+. We went to check it with our contractor and we immediately put an offer on it. We had a little back and forth with the wholesaler but they finally accepted our offer and we got it UC. We should be closing in a couple of weeks.

How did you finance this deal?

With a conventional loan. 15% down (paid through a LOC), 4.15% interest, no points.

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

Yes, our lender Tina Cauwenberghs, at First Citizens Bank. She's awesome! And the attorney Greg Glasby at Jennifer K. Fincher's office.