Buying old landlord problems

[Matt Hildebrand]

Investment Info:

Large multi-family (5+ units) buy & hold investment.

Purchase price: $250,000
Cash invested: $80,000

Off market deal form older landlord that called off a sign we had on another property we were rehabilitated . We paid 250k for two 4 bed 2 bath. One 2 bed 1 bath and garage. And a 3 unit with two 1 beds and 1 bath and a 2 bed 1 bath. So 6 doors in one city block . We separated all utilities and rehabbed 5 of the 6 doors and added laundry to them and the same finish as we do on all our units. It is fully rented at 6300 a month and value at 500 k . We have about 80k in rehab and a good 15 year mortgage on the purchase price or 250 k . So big cash flow and no utilities.

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

We have other doors in this part of town

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

Off market and from a sign we had at another house on same street we were rehabing

How did you finance this deal?

Add it to a prof olio loan

How did you add value to the deal?

Add Landry and full rehab

What was the outcome?

Add 4K a month in cash flow

Lessons learned? Challenges?

How to separate water with the city