Investment Info:

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

Purchase price: $254,900
Cash invested: $254,900

First investment property purchase! Cashflow is estimated and the intention is to strike a balance between profitability, affordability, and quality to make the investment a win for all stakeholders.

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

We wanted a property that would allow us to keep rents affordable for tenants while ensuring both the quality of the property and the prosperity of the business. This property checked all of the boxes and had been very well maintained by the previous owners.

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

This property was found by my business partner who had been on the lookout for a 3+ unit brick property in good condition and in an area that balanced safety and affordability. We came in $5K over asking price based on the state of the market but still asked for repairs after the inspection (and received a credit in lieu of repairs). The sellers were great to work with and the whole process was amicable.

How did you finance this deal?

Cash. We considered using traditional financing to capitalize on low rates but elected to maximize cashflow.

How did you add value to the deal?

We are starting off with minor work to address potential tenant concerns and plan to add additional secure storage in the basement for tenants.

What was the outcome?

A quick and smooth closing!

Lessons learned? Challenges?

Getting input from others who work in different parts of real estate has been invaluable. Recommendations in particular were a big help and made it both easier and faster to compare quotes and services. We were fortunate that most everything worked out well for us through closing but the biggest challenge has been working through all of the minutiae and hoping I haven't missed anything.

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

Investor/mentor - Mike Brumm: A friend-of-a-friend I reached out to and provided me a great deal of valuable advice and input. He also connected me to my realtor, who proved to also be extremely helpful.
Realtor - Paul McKenna: Paul is a fellow investor so he had much more to offer than your average realtor and had both sharp insight and helpful connections.
BP resource - Marcus Auerbach: While we didn't actually work together, his advice on BP and YouTube videos have been very informative.