Large multi-family (5+ units) buy & hold investment.
Purchase price: $650,000
Cash invested: $150,000
Acquired an 8-unit building for $650k. In place rents averaged $750 for one bedrooms in a market that supports $900. There was also one unit occupied by a live in care taker for free. We brought in our in-house management, fixed up the units, and leased up the 1 Bedrooms for $900/month. We will be refinancing in one month (9 months after acquisition) and using the new equity to invest in the down payment of the next property.
What made you interested in investing in this type of deal?
Rents were below market
How did you finance this deal?
80% loan from a local commercial lender
How did you add value to the deal?
fixed up units (new floors and appliances). Upgraded common area fixtures (doors, carpet etc). Added new landscaping to the front of the building. Introduced RUBS.
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