My First Small Apartment Building- Success Story

31 Replies

@Lee Yoder that’s awesome, congrats! Why do you think it sat on the market so long without being sold? Were buyers not understanding the potential of the property?

@Michael Barnhart The cafeteria is being rented out by a Church. They pay $60/week. They have really made this space their own and I couldn't be more happy with the outcome of this space. 

@Tyler Caglia I think there are several reason it sat on the market for so long:

1) Location. It's located about 10 miles outside of Dayton, OH. It's very rural- in a cornfield. Dayton isn't a great market, but this property is outside of a really good area of Dayton.

2) It's a weird property because it's an old school. The building is heated and cooled with one system, so you can't sub-meter and the heating/cooling costs are high.

3) The property was under contract twice, but fell through. I know the Buyers were asking for concessions/lower price, but I'm not sure how much. I'm guessing that the Sellers weren't desperate enough at that time to come down as much as they needed to. So, my timing was just right.

@Kevin Manz Yes, we pay All utilities. We even pay for cable. The entire building is heated with 4 electric furnaces in the basement.

I'm definitely still thinking about pulling money out and putting it into a larger property. I just feel like this is a great time to sell, so I'm having a hard time not wanting to sell at these really high prices. 

That's great that you're in the same situation. Congrats! Where is your 12 unit?

@Lee Yoder I only invest here in ft wayne. I have not been able to hand my places off to PM. Very good point about being a good time to sell. If you do decide to hold, I would strongly recommend switching to gas furnaces. Natural if possible, but propane would still be a good investment. You say you have electric furnaces, so it sounds like you already have the ductwork. What do you think you could get for the complex?

@Kevin Manz The electric furnaces and AC units are new, so I won't be upgrading anytime soon, but thanks for the advice!

Based on the NOI of the property, and the fact that a lot of the big-ticket items have been taken care of (roof, furnace/AC), I think we'll be able to get $700,000 for this property if we sell.

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