From Nightmares to Cash Flow

[Michael Lewis]

Investment Info:

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

Property consists of a commercial/retail space on the first floor (currently occupied by a cafe), a large garage that's being rented for storage space, and three apartments units. Currently 100% occupied.

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

Property was priced extremely low and owner agreed to hold paper.

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

Spotted a small For Sale sign in the window when I was driving around looking at properties.

How did you finance this deal?

Down payment and an owner hold.

How did you add value to the deal?

Put a LOT of $ into the property and was also able to take advantage of grant $ that came into the neighborhood.

What was the outcome?

After two bad property managers, lots of poor repairs, and a host of terrible tenants, it's working great.

Lessons learned? Challenges?

Never make friends with your property manager - be polite, be nice, but keep it professional. And track your expenses!

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

I would recommend my current property manager but no else I've met during my experience.