Non conforming triplex in Panama City Florida.

[Joey Sostheim]

Investment Info:

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

Purchase price: $410,000
Cash invested: $10,000

This is a very unique property with a 3/2 a 1/1 garage carriage house and a 2/1 cottage. In the desirable cove neighborhood

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

I’m looking for passive income

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

MLS we paid asking price because we needed 90days to close. We were selling our personal home and we didn't want to close before we had been in it two years so we paid the sellers of this property to hold it off the market.

How did you finance this deal?

Conventional financing of 80% with an additional 10% in a heloc. For a total of 90% financing

How did you add value to the deal?

Simply turning over to our property manager and bringing it up to market rent. The property is in great shape but it was grossly under rented.

What was the outcome?

Main house rents for $2100. Carriage house rents for $1050 plus $35 pet rent. And the cottage $1200

Lessons learned? Challenges?

Never again will I try to do a simultaneous close! We were supposed to close on our personal home sale and this property at the same time. However our bank couldn’t get an appraisal in time(90days) and the sellers would not extend so we had to pay cash and refinance a few weeks later which over extended us! Not fun at all but in the end it all worked out