Purchase of Units 6 and 7!

[Laura Bowler]

Investment Info:

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

Purchase price: $155,000
Cash invested: $38,000

After several false starts on other properties, we located and purchased a duplex in Wayne MI (each unit 2 bd, 1 bath). The original price was $180K, but we were able to negotiate down to $165K due to the roof age and some water issues in the basement (offered $170K due to roof, and went down additional $5K in inspection). Appraisal came in low at $155K, but due to the issues with the house, and the length of time on the market, the seller was willing to accept the lower number. We settled at $155K and closed at the end of August with a 25% down payment and a 3.875% rate on our mortgage. The property already had a valid certificate of occupancy, so after a few minor repairs, we were able to show the house and got two tenants within a day at $950 per unit. One tenant is moved in and the other moves in Nov 1. We anticipate decent cashflow but with a few major repairs upfront, it may take a bit of time to see that.