Marketing Worked - 4 plex closes 02/15/16

We had been looking at MLS feeds that our realtor sent us, and we have been perplexed at the prices for 4 unit buildings in bad shape.  A property I looked at last summer that was in need of at least 30k in cap ex and had lousy tenants and high crime sold for full asking, 299K.  We had a lead on a building in a suburb of the Twin Cities that was on MLS for 260 days, and seller would not budge on price.  That building was nice, but had some capex issues.  

So, following advice on the podcasts, I worked with my 14 year old son, bought him a computer, and showed him how to ID multi-unit properties in a two square mile radius of our house.  Each day, he produced 5 letters, and I would send them out.  After about 25 letters, i got two responses.  One guy wants to talk about selling two buildings this summer.  Another guy called.  The man has just started putting up signs around town to sell his 4 unit.  I checked the address for data, and found in permits it had four separate heating units installed in 2012.

After checking his rents, which are quite low compared to market, I called him, asked to see the buildng, and after two days of talks, we have a signed purchase agreement.  The bones of the building are great...one of the best I have seen.  The tenants are long term tenants,  always pay on time, never missed a payment.  This seller really invested in his building.   All that is needed are some cosmetic fixes, and down the road, a few bathroom guts.  Pretty easy stuff compared to other properties I have purchased.