Investor · Hopkinsville, KY · Member since 2012 · 111 posts · 40 votes
2016 has been a busy year. My wife and I are each 30. I have had rentals for several years but this year I have wanted to grow my portfolio. I wanted to grow to 25 units in the next couple years.
Fast forward...
I have just finished building a duplex and have another 50% complete. While in the middle of this my wife and I welcomed a healthy baby girl, our first. I decided things were not crazy enough and got under contract on a 48 unit complex.
I've had my eye open for a complex for a while. They never come on the market in my town. After a couple weeks of negotiations I am finally under contract. Hopefully everything goes through.
It is a 48 unit mix of 1,2, & 3 bed units. It has an office and a small onsite laundry. I feel that it's going to be a great value add. Units are $100-$150 below market.
Exciting times!
Wholesaler · Fort Lauderdale, FL · Member since 2015 · 18 posts · 0 votes
10y
Andy N. Hey! Congrats on having a Great year! So far and lol your only half way through! Keep it going! And I one question how did you run the comps in the 24unit property?
Investor · Hopkinsville, KY · Member since 2012 · 111 posts · 40 votes
10y
There have been a couple off market sales in the 16-24 unit size the last couple years that I was able take into consideration. This complex is 48 units. Also, prior to listing this complex the sellers had 3 separate appraisals done to help determine the asking price.
Investor · Seattle, WA · Member since 2016 · 143 posts · 68 votes
10y
congrats on the baby! $100 -$150 below market rent seems not much room for error if market turns, rent drops. It will disappear. It's pretty risky in my opinion.
Flipper/Rehabber · Jacksonville, FL · Member since 2012 · 31 posts · 10 votes
10y
Congrats Andy! The miracle of bringing a new life into the world is precious indeed! :) Do you kind sharing some of the numbers and financing strategy on the apartment building? Were you able to get creative somehow on it, or will it just be a straight 20% down deposit and commercial loan?
Cincinnati, OH · Member since 2013 · 1k+ posts · 1k+ votes
10y
@Andy N. Congrats on the baby and growing portfolio. Can you share more about your leap from duplexes to a 48-unit building? Also, what's your plan for the property? Will you hire a PM?
Investor · Hopkinsville, KY · Member since 2012 · 111 posts · 40 votes
10y
I am financing with a local bank. I'll be using a 5 or 10 year fixed with 20% down. I am still working out the details on this.
This property was built using a program that offered special financing terms. It had rent control guidelines that had to be followed until the note was paid off. The rent control kept the rents well below market value. The mortgage was paid off in the last couple years. The property manager has only done rent increases of $25 per year for the last couple years.
I plan to make stronger increases as units become vacant. I will be using a property manager.
I appreciate all of the positive feedback.
Investor · Hopkinsville, KY · Member since 2012 · 111 posts · 40 votes
10y
John Casmon I started when I was 20 I believe. I purchased a duplex as my first investment. Since then I have I guess semi flipped a few properties. By this I mean, I would purchase, rehab, and rent.
I would then sell after a while and upgrade. I have pretty consistently maintained a 4-8 unit portfolio. I have sold my "starter" properties. The ones that I am holding are the better properties that I have owned.
I have always wanted to get into apartments. They just don't come available very often in my area. I had pictured buying something 10-20 units. This property came on the market and i figured I would take a look. I liked what I saw and began negotiations.
I am having my inspection next week. Hopefully everything will go good and I'll be ready to order the appraisal.
Real Estate Broker · Seattle, WA · Member since 2012 · 76 posts · 14 votes
10y
@Andy N. you are living the dream my friend! Congrats on the new addition! and the new cash queen! Hopefully there are no hiccups for you! at least for the multi lol.
Portland, ME · Member since 2012 · 616 posts · 550 votes
10y
Congratulations on the baby and on the wonderful future your investments will provide for her! If it allows you to leave your regular job in a few years, you'll really enjoy the freedom you have to attend her events, chaperone field trips, meet her off the school bus, etc. In 18 years, the cash flow will pay for her college degree!