Updated almost 4 years ago on . Most recent reply
First Multi Family - Laconia
Investment Info:
Large multi-family (5+ units) buy & hold investment.
Purchase price: $750,000
Cash invested: $187,500
mixed use 9 unit building. Eight 1-bedroom apartments and One retail space on first floor.
What made you interested in investing in this type of deal?
1031 exchange from a two bedroom condo. Wanted to scale up and increase cashflow.
How did you find this deal and how did you negotiate it?
found on market. It was listed for $850K after walk through and analyzing current rents and expenses, determined that purchase price was too high. Made offer for $100k under list, and it was immediately accepted.
How did you finance this deal?
1031 exchange ($140k) and got investment matched by a partner (family member). additional funds went into reserve account to get the property up on its feet and to make any mods.
How did you add value to the deal?
Cash, and proximity to property.
What was the outcome?
Closed on the property 12/28/2021.
Lessons learned? Challenges?
Seller was a flipper. Insurance and taxes he was paying did not reflect sales price. They WILL increase after purchase. As a newer investor, something i didn't consider when running numbers.
Estopel agreements.... make sure they are in place. rents that were supposedly raised months ago, weren't. One tenant behind $1100 as well.
Call Utilities companies if youre paying for them. Get average billing from them
If you have idea's about modifications to the property, call planning and zoning
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
David Twiss- Commercial Lender, Enterprise Bank