No money invested, $221 cash flow

[Andrew Boyer-Kern]

Investment Info:

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

Purchase price: $225,000

Up down converted duplex in B neighborhood. Both units were rehabbed in the last two years. Was able to purchase this with no money invested. Was an off market deal and the seller gave us a 60k loan for the down payment and closing costs on a 20 year note at 4% interest. Cash flow of $221 is after saving 5% repairs, 5% vacancy,10% Capex and paying the sellers note of $379.59 a month.

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

Reached out to a friend on Facebook after I noticed he was listing properties for rent. We messaged for a few days about being investors and the ups and downs.
A few months later he brought this deal to me, it’s his boss’s property that he managed.
He was stuck on the purchase price of $225k but it did end up appraising for $228k.

How did you finance this deal?

Seller financed $60k for down payment on a 20 year amortization at 4%.
30 year fixed at 3.25%