Cash Flowing On The Mercer Street Cottage in Savannah

[Justin Hackney]

Investment Info:

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

Purchase price: $330,000
Cash invested: $1

The pink Mercer Street Cottage was built in 1914 and a gem of the Historic Savannah Foundation. It's a small duplex with 1/1 on each side, a 5 minute walk to Forsyth park, and a 15 minute walk from downtown. Average rent in the area for a 1/1 is ~$1200-$1400 with a monthly cost of ~$2000.

I'm a veteran so living in one side for now and renting out the other side. I bought the place with a VA home loan, insane rates from Bank South, and no money down. Needless to say, we're cash flowing on day one.

Currently looking for SFH around the same area here in Savannah for next investment.

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

Just getting started in investing in real estate, I needed something manageable. This historic home has been well maintained by both the previous owner and current tenant. Because I'm using the VA home loan, I needed to live in one side for a while. So, my wife and I wanted to actually WANT to live there. The location is great! And we're use to small apartment living so it's no problem for us. We'll be leveraging the cash flow into new projects as well.

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

Through my agent, Nina Smith.

How did you finance this deal?

VA Home Loan

What was the outcome?

Cash flow $500 conservatively every month.

Lessons learned? Challenges?

Should have done this sooner!