Large multi-family (5+ units) buy & hold investment in Lubbock.
Purchase price: $340,000
Cash invested: $43,000
This was our very first deal. We were ecstatic to find this one on the market, we were one of 3 bids and we were the lowest, and we were chosen. We shocked everyone with this deal and there were moments that we thoughts the funding would not go through, but low and behold we persisted and now we are the proud owners of 2 triplexes in a large college town.
What made you interested in investing in this type of deal?
The price was amazing and the shape the rental units were in were fantastic, very well taken care of (dated, but taken care of). We have always talked about owning multi-family but didn't know it was possible on our very first investment deal.
How did you find this deal and how did you negotiate it?
We found it on MLS, we knew that the full asking price was a great price and we also knew there were 3 other offers on the table and so we asked full asking and we were chosen.
How did you finance this deal?
Commercial lending with a higher interest loan specifically for nurse practitioners on investments/commercial use. I did negotiate the APR on the higher interest loan (it pays to know how interest works).
How did you add value to the deal?
We are going to renovate 2 of the units and AirBnB them out and the others we will rent increase when their terms are expired.
What was the outcome?
We have 6 units on our first deal!!
Lessons learned? Challenges?
Man, we did learn a lot about perseverance and also how to communicate with each other throughly. We did have a lot of people who thought we were being too risky but so is retiring without a retirement! It was trying, and I know we are not done with the trying parts but we have learned so much on this first deal. We are also getting our experience with a hoarder (one of the units we will be renovating) on our first deal as well.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
We had a real estate agent and a lender from the bank we were working VERY close with.
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