My First Investment! 6 Plex and a Triplex

7 Replies

Investment Info:

Large multi-family (5+ units) buy & hold investment in Cornwall, Ontario.

Purchase price: $700,000

Cash invested: $175,000

Well maintained buildings with 9 apartments. 201 is a triplex and 205 is a 6 plex. Buildings have been in the family for 50 years.
The purpose built 6 plex was constructed in 1955. The Victorian home was constructed in 1873.

What made you interested in investing in this type of deal?

During the period that my wife and I started to learn about real estate, we looked at every possible way of doing it. SFH's, BRRRR's, 2-3-4's and Commercial MIx, etc. After seeing many different types of properties and uses we settled on the multifamily 5+ as what we wanted to focus on. More rooms, more diversification, less likely to lose all my tenants at once. Stronger cash flow and cost per unit is cheaper and all under one roof.

How did you find this deal and how did you negotiate it?

There were several showings at the property, over twenty in the first two days. When I showed up I was fifteen minutes early.... this allowed me to speak to the owner who was mowing the lawn which ended up In getting a private tour by the owner. At the end of the showing, my agent informed me this was going to be a multiple bid situation and they were not going to accept any offers until Wednesday. (48hrs later). We submitted our offer Tuesday night and scared away the others.

How did you finance this deal?

Commercial Department at Desjardins Casse Speciale.  They have been absolutely amazing every step of the way and gave me the confidence to know I would have financing when I found the right deal. Message me if you're looking in Ontario East & Ottawa.

How did you add value to the deal?

I don't know if I add in value to the deal. However, there are items on the property that I can upgrade over time to increase the value of the buildings.

What was the outcome?

We ended up getting the property. Once our offer was submitted no other offers came in. During the whole inspection and appraisal processes, there were other investors waiting to make an offer.

Lessons learned? Challenges?

Lessons Learned:
- Inspections are meant to scare you, but when the math makes sense it's worth forcing yourself forward.
- Be more proactive with my agent in getting paperwork from the seller during the conditional period.
- Always be early, you never know who you may meet or get to talk to.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Yes. I can refer my agent in a private message. The home inspector is solid with very very good reporting.

@Paul H.  Congratulations.  But I don't understand the Q&A format of your post.  Did you already have this posted somewhere else and then decided to re-post here with a Q&A attached?  I find that part confusing.  Can you explain why you chose this format for posting?

@Account Closed The Q&A format you're referring to is the template BP had me fill out after I added a new invesment to my profile page.  If the formatting has changed it may due to adding photos or correcting spelling after the post was submitted to this forum by the template.

@Paul H.

Thanks for explaining. For newbs like me, that just looked odd. Anyway, seriously, congratulations.

Keep us posted on how it goes. Our Cornwall rentals are doing well.

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