Christian Osgood bought a six-unit mixed-use property with seller financing that paid him $50,000 at closing. He deferred loan payments for six months while spending four months on repairs, so the property broke even during construction. He now rents the units for ongoing cash flow.
Chapters
How the heck do you cash flow a vacant building? How are we getting paid? Well, up above there are 6 multifamily units. Now, only 3 of them are rented. However, we negotiated on this deal. We got $50,000 given to us at closing. So I bought this for less than $0 down. That should be in budget for you. We have an estimated 4 months of construction to get this retail space and some of the multifamily upstairs fixed. I have a retail space over there and a retail space back behind me over there. We're going to be fixing each one, getting them on market. Not actually all that much to renovate. We gotta fix the ceiling. The water has already all been remediated. We've checked for mold problems, there are none, which is great. I am an anti-slumlord. I like buying the beat-up properties and making them nice again. We buy a lot of nice stuff, but every once in a while I'm gonna take the cash flow from the rest of my portfolio and dunk the money into fixing a building that deserves to be fixed. This is one of them. Payments don't start for 6 months, zero mortgage. So we bought this property where it breaks even under construction.