Hello guys well here is my latest.
I do computer work by trade and I have a home ran business for computer repair. Well I had a guy contact me las week about building him a new computer.
After talking with him several times I found out that he owned a run down or rather somewhat undesirable 6 unit apartment building. He said it was in an ok neighbor hood but he just didnt want to be bothered with it anymore because he had not made any repairs to it in years.
After doing a little due diligence I found out that he owed nothing on it and it was true he had not made any repairs and you could tell it. I asked him if he was going to sell it he said probably just let a friend of his take it over and give him a "little something". I asked what a little something was and if he would consider letting me take it off his hands. He laughed and said yeah...sure....build me new computer and give me a grand so I can go to Vegas this weekend and we have a deal. (FYI there is only 2 tenants in the complex. The other units are not livable at the moment).
I said ok...you got a deal, now put it on paper....he looked at me like I was crazy and laughed...you are for real huh, yes I said and then I told him to show how serious I was he would have his computer the next day and the grand as well. So I wrote up a contract stating that if I provided these two things he would sell me the property. We agreed upon 200K which was pretty good even for th condition it was in and since he owned outright, I told him I did not want to use a bank but I wanted him to carry the note.
He agreed, but I told him I would collect the rents nd pay him from that but that all the rents would be due and payable to ME.
He again agreed. This guy acted like he was relieved to have it gone. Well I completed the computer using skills I already possessed ad delivered a computer that would retail for around 3500.00 complete with a 5 disk DVD/CD burner and infrared capabilities to go with his blackberry.
Well we signed all the papers this morning and I am now the proud slum lord owner of what is soon to be renovated luxury apartments. Here are my numbers.
Purchase price: 200K
Down payment: 1000.00 and a computer
Payment = 2500.00 monthly
Sq Ft: 7200 (1500 sq/ft each 3 bedroom unit =2)
(900 sq/ft each 1 bedroom unit = 2)
(1200 sq/ft each 2 bedroom unit = 2)
Repairs: 12K per unit (72K total)
Potential rent: 1 br units (2) x 925.00 = 1850.00
2 br units (2) x 1250.00 = 2500.00
3 br units (2) x 1500.00 = 3000.00
TOTAL MONTHLY INCOME = 7350.00
Minus Taxes, ins, payment = (3320.00)
GROSS MONTHLY CASHFLOW = 4030.00
Minus REPAIRS payment = (2000.00)
NET MONTHLY CASHFLOW = 2030.00
Not bad for using my skills with computers and a little aggressiveness.
TWITTER - anitarny / FACEBOOK - anitarny
"FAILURE IS NOT AN OPTION"