My wife and I found this multi-family in Portland that fit all of our criteria, then found David with his extensive experience via BP. He is very knowledgeable about all aspects of rental property sales and ownership, and he is the linch-pin that connected us to other "team members" that we need. Our plan is to convert the third floor into another unit so that we can achieve positive cashflow in this high appreciation area, and then cash-out refinance. I hope to work with David in the future.

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

My wife and I are interested in buy-and-hold in high-appreciation areas. Portland Maine is great, and this home was well priced.

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

I found it on Zillow, and then contacted David for the next steps. Our initial offer of $440,000 was ignored, and we then put in a back-up offer at the real asking price of $475,000. Inspection revealed some major issues, and we lowered our offer to $430,000. Sellers countered at $445,000, and we countered at $440,000. We finally caved to the $445,000 ask.

How did you finance this deal?

Conventional loan, 3.65% 30-year, 25% down.

How did you add value to the deal?

The roof needs replacement and in this area cash flow is very difficult with high prices. We'll add a third unit in the top floor. It helps that my wife is an architect.

What was the outcome?

TBD, but we are optimistic this is a solid long-term hold.

Lessons learned? Challenges?

Properties go fast in Portland, so we know that if it's one we really want in the downtown, we may have to act fast and aggressive. Finding them off-market is a great option, although finding actual deals seems difficult. I also learned that we caved at key moments in the negotiation, but that's because this is the property we really wanted. If we attempt an offer on a property that we aren't so attached to and find more common, I hope that we are stronger in negotiations.

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

David Marshall is a fantastic investor's real estate agent. Tim Discatio at Garnsby Brothers sourced the property insurance. Michael Riley at New American Finance is amazing as a lender.