Cash Cow in St. Paul

[Eric Schmid]

Investment Info:

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

Purchase price: $192,000
Cash invested: $187

Contributors:
Joseph Ziolkowski

Joesph Ziolkowski and I couldn't be more fortunate to pick this one up. First and foremost, we have to thank Anthony over at LoanDepot - he discovered the Neighborworks Home Partners, which provided us a $15k loan, $7.5k was at 1% interest and the other $7.5k was a 0% interest loan from the City of St. Paul. With the $15k covering us at closing, we paid a total of $187 of this duplex. After considering for 27% expenses, it currently cash flows $441 per month.

Thanks!

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

This was one of two duplexes Joesph and I jumped into for our househacks upon graduating from college. Financially, this was in our price range and it made sense from a cash flow perspective.

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

Found this one on the MLS, and paid $22k over asking

How did you finance this deal?

We leveraged the local Neighborworks Home Partners for an additional loan, which was enough to cover nearly the entire down payment.

How did you add value to the deal?

We didn't - we were very fortunate that this property came in great shape.

Lessons learned? Challenges?

The biggest lesson that we learned, especially this being our second property, was being willing to pay over asking price. So often, people get wrapped around the asking price, and we did too, but knew that this was still a great deal according to our numbers. Trust your numbers!