Small Win's Keep Us Going

[Holly Brown]

Investment Info:

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

Purchase price: $350,000
Cash invested: $8,700

Small single family 2/1 with a 1/1 apartment.

Medium term renting out of the 1/1 apartment at 1200/month
Long term renting out the 2/1 at 1900/month
PITI = $2455
Additional predicted monthly expenses and predicted vacancy: $310/month
Cash flow per month = $335

Cash Down: $8700
Investment to furnish garage apartment for medium term renting: $4500
Cash on cash ROI = 30.5%

Renters secured on both the day after closing to move in on 4/1.

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

Great location in Sawyer Heights. Buffalo Bayou Brewing moved in recently and the neighborhood is gentrifying

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

ON the MLS... You never know who is going to say yes to a low offer on the MLS

How did you finance this deal?

Owner Financing at 6% interest

How did you add value to the deal?

I was able to walk the sellers through a non-traditional seller financing closing with an attorney. They had never done this before and were investors themselves. Closing costs for seller was $1000 with a 15 day accepted offer to closing date. They were thrilled.

What was the outcome?

Great cash on cash ROI, an investment in a great area in Houston, and 2 more doors in the portfolio