Large multi-family (5+ units) buy & hold investment in Longview.
Purchase price: $210,000
Cash invested: $20,000
8 unit apartment building. All 2 bed/ 2 baths.
How did you find this deal and how did you negotiate it?
Found it on the MLS. Asking price was $285k. This place was not taken care of at all and one person out of 4 units rented were paying. We offered $240k and they excepted. The appraisal didn't come back high enough so we had to renegotiate the price to $210k. The agent said they had another cash offer(pretty sure he was bluffing) so we keep our price at $210k and they excepted.
How did you finance this deal?
Local bank. We were able to get the appraisal on the ARV and they financed the purchase and renovation. We had to borrow $20,000 from a friend and put $20,000 down ourselves.
How did you add value to the deal?
We are still renovating all 8 units. And we will be raising rents to market value.
What was the outcome?
started renovating 5 units. And gave the tenants a letter telling them what we were doing and they can rent the renovated unit for a higher rent. All of the tenants moved out fairly quick. Still undergoing renovations.
Lessons learned? Challenges?
Getting contractors to hurry and finish.
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