lessons learned from my first 20 unit rehab

Multi-Family and Apartment Investing
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lessons learned from my first 20 unit rehab

Tab Teehee
Rental Property Investor 路 Lake Suzy, FL 路 Member since 2018 路 171 posts 路 216 votes

Reached a major milestone after nearly a year and a half....converted my construction loan to permanent financing!!! On 5/31/18 we closed on a 20 unit property that was 100% vacant and in need of lots of love! We added washer/dryer connections to all units and ductless min split heat pumps. Full stainless kitchen appliances including above range microwave. Textured all walls, painted all brown woodwork, new flooring, all new plumbing fixtures and toilets, bathtubs as needed, water heaters as needed....we did a lot!!! For a first time project i'd say we learned a lot and although the project took twice as long to complete as we planned, it's still a huge success! We are currently 85% occupied and 95% leased and expect to be 100% before end of year! This form definitely helped me get through some rough patches either by reading through others posts or posting my own questions. Now I'm asking myself what's next, lol! I'm hooked

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Frank Geiger
Rental Property Investor 路 NC 路 Member since 2018 路 776 posts 路 776 votes
6y

Congrats on your success! Can you post some of the numbers?

6Reply
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  • Tab Teehee
    OP
    Rental Property Investor 路 Lake Suzy, FL 路 Member since 2018 路 171 posts 路 216 votes
    6y
    3Reply
  • Tab Teehee
    OP
    Rental Property Investor 路 Lake Suzy, FL 路 Member since 2018 路 171 posts 路 216 votes
    6y
    11Reply
  • Bill Goodland
    Rental Property Investor 路 Allentown PA, United States 路 Member since 2016 路 567 posts 路 442 votes
    6y

    @Tab Teehee congrats man that鈥檚 awesome! Care to share any numbers on the deal? What you paid? Put in? And current rents and value?

    0Reply
  • Byron Wilson
    Rental Property Investor 路 Greenville, SC 路 Member since 2015 路 17 posts 路 10 votes
    6y

    @Tab Teehee congratulations on Knocking out your 1st mutifamily! I'm looking to get into small mutifamily myself. What would you say was the top lessons learned in the process? How did you structure the deal?

    0Reply
  • Tab Teehee
    OP
    Rental Property Investor 路 Lake Suzy, FL 路 Member since 2018 路 171 posts 路 216 votes
    6y

    @Byron Wilson

    I wish I had some creative top secret financing scheme to share but it wasn't anything to complex....I approached a local bank that was familiar with the property about my interest in purchasing it, rehabbing it and professionally managing it.

    I found a professional management company that helped me prepare a pro-forma for the bank, next was to determine what repairs and improvements were needed to bring the property to a condition to command max rents. Then I put together estimates for materials and labor to make it happen. All this information was provided to the bank and the appraiser, which was how we arrived at the ARV. The bank took my purchase price plus proposed improvements and offered me a 12 month interest only construction/purchase loan. I had to put about 100k into the deal. Now we have long term financing in place and some good cash flow!

    11Reply
  • Tab Teehee
    OP
    Rental Property Investor 路 Lake Suzy, FL 路 Member since 2018 路 171 posts 路 216 votes
    6y

    @Byron Wilson

    Lessons learned...

    Focus on getting individual units complete and rented asap instead of working on multiple units at a time.

    When contractors aren't performing up to task or dragging their feet, stop the bleeding right away and get them out of there!

    The cheapest bids can end up costing you in the long run...hiring a professional GC would have cost me more up front, but I could having stated renting units months sooner.

    10Reply
  • My Nguyen
    New York, NY 路 Member since 2014 路 37 posts 路 19 votes
    6y
    So you鈥檙e saying Saving Time and get units rented out asap is everything right?
    I will jump into converting my 6plex soon so I will totally need to ink this in my brain.

    Originally posted by @Tab Teehee:

    @Byron Wilson

    Lessons learned...

    Focus on getting individual units complete and rented asap instead of working on multiple units at a time.

    When contractors aren't performing up to task or dragging their feet, stop the bleeding right away and get them out of there!

    The cheapest bids can end up costing you in the long run...hiring a professional GC would have cost me more up front, but I could having stated renting units months sooner.

    1Reply
  • Clifford Paul
    Rental Property Investor 路 Member since 2018 路 483 posts 路 956 votes
    6y

    Congratulations! Rehab looks great!

    0Reply
  • Tab Teehee
    OP
    Rental Property Investor 路 Lake Suzy, FL 路 Member since 2018 路 171 posts 路 216 votes
    6y

    another lesson learned...be sure you understand the permits that your municipality will require and budget accordingly....in my case I needed a permit for electrical, mechanical (hvac), and plumbing at $75 each times 20, or $4,500, and that didn't include final inspection fees! 

    2Reply
  • Tab Teehee
    OP
    Rental Property Investor 路 Lake Suzy, FL 路 Member since 2018 路 171 posts 路 216 votes
    6y
    Originally posted by @Clifford Paul:

    Congratulations! Rehab looks great!

    Thanks Clifford! I'm going to post some before pics so you'll get a better idea of what we went through, lol

    2Reply
  • Tab Teehee
    OP
    Rental Property Investor 路 Lake Suzy, FL 路 Member since 2018 路 171 posts 路 216 votes
    6y
    3Reply
  • Tab Teehee
    OP
    Rental Property Investor 路 Lake Suzy, FL 路 Member since 2018 路 171 posts 路 216 votes
    6y

    https://www.facebook.com/marke...

    1Reply
  • Jennie W.
    Mc Gregor, TX 路 Member since 2018 路 41 posts 路 35 votes
    6y

    @Tab Teehee great job!! It looks amazing!!

    0Reply
  • Tab Teehee
    OP
    Rental Property Investor 路 Lake Suzy, FL 路 Member since 2018 路 171 posts 路 216 votes
    6y

    @Jennie W.

    Thanks Jennie!

    0Reply
  • John Culotta
    Investor 路 Boise, ID 路 Member since 2016 路 42 posts 路 19 votes
    6y

    @Tab Teehee -- WOW!! Great job on such a big project / milestone. Any chance you could share some numbers with your BP tribe? Was it a syndication? Did you put sweat equity into it? What kind of team did you have? Thanks in advance and again, congratulations 馃榿

    0Reply
  • Shane Dempsey
    Member since 2019 路 7 posts 路 2 votes
    6y

    @Tab Teehee

    Thanks for sharing your experience and hope you find your next deal soon bro!

    0Reply
  • My Nguyen
    New York, NY 路 Member since 2014 路 37 posts 路 19 votes
    6y
    OMG!! 

    Originally posted by @Tab Teehee:

    another lesson learned...be sure you understand the permits that your municipality will require and budget accordingly....in my case I needed a permit for electrical, mechanical (hvac), and plumbing at $75 each times 20, or $4,500, and that didn't include final inspection fees! 

    1Reply
  • John Culotta
    Investor 路 Boise, ID 路 Member since 2016 路 42 posts 路 19 votes
    6y

    @Tab Teehee great pics - thanks!

    0Reply
  • Tab Teehee
    OP
    Rental Property Investor 路 Lake Suzy, FL 路 Member since 2018 路 171 posts 路 216 votes
    6y

    @John Culotta

    This deal wasn't too difficult to put together....purchase price $375,000...rehab budget $425,000...$100,000 down payment, $700,000 loan, first a construction loan at 6% interest only, and now a P&I 20 year am 10 year term at 4.25%. No syndication, just my own cash from the sale of some single family rentals and a butt load of sweat equity!!!! I actually fired all the guys that were working out there, back in march, and finished the last building with just my wife and I and a local hourly handyman.

    4Reply
  • Tab Teehee
    OP
    Rental Property Investor 路 Lake Suzy, FL 路 Member since 2018 路 171 posts 路 216 votes
    6y

    @John Culotta

    Thanks! Hopefully they will give hope to someone that's found themselves in a time capsule renovation like we were, lol!

    0Reply
  • Tab Teehee
    OP
    Rental Property Investor 路 Lake Suzy, FL 路 Member since 2018 路 171 posts 路 216 votes
    6y

    @Shane Dempsey

    Thanks! Yes....the next deal....there's about 30 acres that surround this property that I'd like to develop into condos and senior living....no clue where to start and pockets not deep enough, lol!!!!

    0Reply
  • John Culotta
    Investor 路 Boise, ID 路 Member since 2016 路 42 posts 路 19 votes
    6y

    @Tab Teehee thanks for replying. Very helpful.

    0Reply
  • David BarnettPro Member
    Rental Property Investor 路 Cambridge, MA 路 Member since 2016 路 634 posts 路 415 votes
    6y

    @Tab Teehee Great job and thanks for sharing the pictures.  Nice looking units post rehab, and love properties that have the old school appliances and that nasty old school carpet.  Scares most people off, and can really transform the properties with a little bit of work.

    0Reply
  • Shawn Nachurski
    Rental Property Investor 路 Medford, NJ 路 Member since 2015 路 8 posts 路 8 votes
    6y

    @Tab Teehee Thanks for sharing your experiences, the good and the bad. My wife and I are turning around a 21 unit MHP and it can be very frustrating. Your stories definitely help me keep my sanity as I fly to Indiana to keep on top of things. Super happy for you and your wife. Congrats! Thanks again for sharing. 

    0Reply
  • Rhonda McDaniel
    Realtor 路 Tulsa, OK 路 Member since 2019 路 76 posts 路 42 votes
    6y

    @Tab Teehee what town? I鈥檓 near Tulsa. Congrats. Sounds like a great deal.

    0Reply
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