New investor seeking advice on potential multi property deal

New investor seeking advice on potential multi property deal

Seattle, WA · Member since 2016 · 16 posts · 3 votes

Hi - I am looking for my first investment deal. I found a potential opportunity to purchase 5 MF properties total of 15 units in Pierce County WA. All properties are listed separately, but owner may be willing to sell all 5 as a package. I do not have personal financing for the entire deal. Here are my questions:

1. Is it best to analyze each property individually, or as a whole.

2. What would be the best funding strategy? 

Any advice would be greatly appreciated!

Thanks in advance,
Sue

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  • Real Estate Investor · Madison, SD · Member since 2015 · 187 posts · 61 votes
    10y

    @Sue Willoughby

    1. If you're going to buy it as a whole, I would analyze it as a whole. If you're going to buy them separate, then I'd analyze that way!

    2. You're probably going to have to bring in some private money. Maybe a partner? Don't know if you have equity in a primary residence but could use a HELOC if you do.

    OR ---- You could get creative and work out some kind of lease option for the first few years while you save cash flow and then work it into owner financing (or bank financing at that point if you qualify... or BOTH) with the seller if they would be willing to do that instead of taking a large lump-sum.

  • Seattle, WA · Member since 2016 · 16 posts · 3 votes
    10y

    @Kyle Scofield

    Thanks for the reply! Just completed the individual rental analysis, all have good potential. Current rents below market, pos cash flow, decent CoC ROI.

    I do have HELOC and 401k funds available, so not coming to the table empty handed, just need to find the right partner/lender to make it happen.

  • Real Estate Investor · Madison, SD · Member since 2015 · 187 posts · 61 votes
    10y

    @Sue Willoughby awesome! It looks like you'll be okay, just talk with the seller and see if he'd be willing to work out some terms with you.. With the right terms, you may not even need a partner or lender!

    Kyle.

  • Seattle, WA · Member since 2016 · 16 posts · 3 votes
    10y

    @Kyle Scofield that's what I'm thinking :) Go big or go home!

  • Investor · Kent, WA · Member since 2015 · 624 posts · 274 votes
    9y

    How did this deal pan out @Sue Willoughby?

  • Seattle, WA · Member since 2016 · 16 posts · 3 votes
    9y

    This particular deal didn't work out. I did however just purchase a vacation rental in Bisbee AZ, set to close mid December.

  • Queens, NY · Member since 2017 · 65 posts · 16 votes
    7y
    Originally posted by @Sue Willoughby:

    This particular deal didn't work out. I did however just purchase a vacation rental in Bisbee AZ, set to close mid December.

    Reviving an old thread...

    I have a friend who just closed on a deal there. I wonder, how did the rental in Bisbee work out for you?

    Thanks!

  • Seattle, WA · Member since 2016 · 16 posts · 3 votes
    6y

    Hey Daniel - Sorry haven't been on BP much. The STR market has become a bit saturated, but my rentals are steady, plus it gives me an excuse to be down there. :)

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