Detroit MI 3 unit cashflow

[Gregory Franklin]

Investment Info:

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

Purchase price: $12,500
Cash invested: $7,000

Detroit Michigan 3 unit multi, 1 bed unit on the second floor, 2 bed unit on the first floor and a 1 bedroom unit in the basement.

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

The entry price was so low that it was a no brainer and I actually lived in the area.

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

The property was listed on the MLS (multiple listing service) here in Michigan. I paid full asking price.

How did you finance this deal?

I paid cash out my savings.

How did you add value to the deal?

I didn't really ad much value other than refinish the hardwood floors and paint. Recently the first floor tenant moved out after 4 years so I will be adding value to that unit by completely remodeling the kitchen and bath.

What was the outcome?

The outcome was I recouped my total investment back in one and a half years.

Lessons learned? Challenges?

Lessons learned was to keep repeating! The challenge was finding such amazing deals that wasn't immediately sold to the listing agent family and friends.

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

I mostly contacted the listing agents and paid cash.