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 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.

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

We have been looking to expand in multifamily to help accelerate our investing, and reach our cash flow goal / financial freedom.

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

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.

How did you finance this deal?

Conventional Loan - We settled at $155K and closed at the end of August with a 25% down payment and a 3.875% rate on our mortgage.