Cal E., an airline pilot, bought a motel as a start for a home business which he plans to run when he retires from the airline. The motel is doing well but Cal thinks there are other chances for him. Recently a very attractive apartment house containing 48 furnished units was offered for sale. The mortgage payments are about $3,000 per month.
Since the apartment house would make a nice combination with his motel, Cal watched it closely. The owner listed the apartment house for several months but couldn’t get anyone who was willing to take on the large monthly mortgage payment. After waiting for three months, Cal made his move. He offered to take over the apartment house, which is valued at $315,000, for no cash down. By this time the owner was so anxious to sell that he jumped at the chance.
So Cal, who never stops looking, became the proud owner of real estate worth more than $300,000 without putting up one cent! By careful manipulation of tenants between his motel and apartment house, Cal is keeping both rented at almost full capacity. Although the mortgage is a heavy burden, Cal feels he can soon “get out from by refinancing. When he does, he’ll be In clover because his
net worth will be enormously increased.