11 Plex Purchased initially on an owner carried contract

[Nick Atwood]

Investment Info:

Other buy & hold investment in Gaston.

Purchase price: $650,000
Cash invested: $75,000

11 Unit Mixed Use Property. 3 retail units on the lower level, and 8 apartments mostly on the upper level.

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

The price was right, I was able to come into the deal with barely more than 10% down with a seller carried contract in place.

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

I found this deal as an expired listing, and contacted the owner by reaching out to one of the tenants for the owner information.

How did you finance this deal?

I financed this deal for the first year on an owner carried contract, and then cash out refi with a conventional lender.

How did you add value to the deal?

I added value by remodeling here and there. There were only 10 units originally, and I added an 11th by using existing plumbing/rooms in place. All the rents were below market, and I've raised them all.

What was the outcome?

The outcome was owning a property that has more than doubled in value.

Lessons learned? Challenges?

The roof was a big undertaking, but by shopping around I was able to find someone who did it for 1/4 of the average price, and came with a 10 year warranty.

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

I represented myself in the deal, and negotiated a large repair credit to help cover some of the initial expenses including the roof.