Good cash flow for small deal

[Dan Murphy]

Investment Info:

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

Purchase price: $110,000
Cash invested: $35,000

We almost bought this 3 unit property late last year. Seller lied to us about lead and there were open BOH issues in one of the units. Ended up buying it a few months later. Picked it up for 100k and put 35k into it. It is currently fully occupied with tenants paying 1,500, 1300 and 800.

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

We only buy property if operating expenses can be covered with the building 50% occupied. It’s a model we follow. It’s a model my business partner used to create a portfolio of over 350 units in central mass.

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

MLS and our amazing broker

How did you finance this deal?

Private Money

How did you add value to the deal?

We have our own maintenance team that did all the work.

What was the outcome?

Solid cash flow!

Lessons learned? Challenges?

This particular building was business as usual. Always learning something but nothing too crazy on this one.