Updated over 6 years ago on .
12 unit senior housing, converted to open housing needed work!
Investment Info:
Large multi-family (5+ units) buy & hold investment.
Purchase price: $90,000
Cash invested: $25,000
This was an MLS purchase, was a senior housing project.. they moved there tenants out into the new building and needed to move this fast, just saw it at the right time. Was under priced for a fast sale, one tenant in the building which helped that had left heat on on the building. But all units need updates, new roof.. all electric its the 80's. Rents in this are are low. Considered going for seasonal tenants as its a recreational area, but we have lots of people looking for affordable .
What made you interested in investing in this type of deal?
It was all about price.
How did you find this deal and how did you negotiate it?
MLS, listing I am a broker, but it was out for everyone.
How did you finance this deal?
Relationship with bank, 3 year note for 5% on 70K we put 20K down and additional 25K in impovements.
How did you add value to the deal?
quick gross rent projections, there was enough room that if we were off on some things.. like house meter electric we could make it work.. we are getting a handle on over all expense as we are 11 out of 12 filled up.
What was the outcome?
So far so good.. it has good cash flow allowing us to make updates, area tenants are mixed
Lessons learned? Challenges?
I allowed dogs.. now everyone has a dog.. I will initiate a new rent payment structure with our dog's.. we had the tenant when we bought and old fella with a nice dog named grizzly, so we allowed dogs from the start.. now we are scooping dog **** up..
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Me.. i am an active agent in Northern wisconsin, lenders I work with Jerry Bybee with Nicolet bank, its a medium size bank in wisconsin.. he is good to work with understands income property and is more than happy to look at deals.