Multi-Family Rookie - My Journey
Introduction: I have been in real estate as a side hustle for 20y. I have Flipped and rented SFR and a few duplexes. I currently own about 40k sqft of Commercial space over 4 different properties mostly medical space. We have renovated unique spaces into class A medical. How do you find a good deal? Unique up on it. ;)
This is my first venture into multi-family. I'm a do it yourself and joining a syndication as a passive investor didn't appeal to me.
How I Found It: I found this property on Zillow, but not on the MLS. It had a contract on it, but I hounded the broker to take my backup if anything fell through. The initial deal did fall through because of lack of funding.
The Property: 20 door unit with two 2-story buildings. All units are identical 2/2 Built in mid 90's; Brick Exterior
The Bad: Lots of delayed maint, 20yo HVAC units (except a couple that have been replaced.
The Good: Rents are far below typical for the area and have not been raised in years. Most leases are month to month.
Financing: Smaller bank I have a relationship with. 20% down, 7y fixed with 20y AM at 4.25%. No pre-payment. Easy loan based on previous relationship.
Plan: We will immediately raise rents a little, but not all the way to market rate. Hopefully a hand full will move out, but not all. As tenants move out, we will reno (new paint, LVT, Countertops, and appliances) and bring rents to market rate.
I will post pics next week and keep updates as I go along. Bigger pockets community has been incredibly helpful over the years and it's nice to share my own journey.