Updated over 2 years ago on . Most recent reply
7 Unit Multi-Family Out-of-State
Investment Info:
Large multi-family (5+ units) buy & hold investment.
Purchase price: $260,000
Cash invested: $65,000
Sale price: $320,000
7 unit apartment complex. Cash flowed $1,000 per month. Sold to 1031 closer to home.
What made you interested in investing in this type of deal?
Cash flow - I wanted something that would cash flow at least $1,000 per month. I accomplished this and then sold to reinvest closer to home.
How did you find this deal and how did you negotiate it?
I found it through a property manager that wanted to sell her own property.
How did you finance this deal?
Commercial loan, 25% down. Pulled equity from my personal residence for the down payment.
How did you add value to the deal?
Natural market appreciation
What was the outcome?
I doubled my initial investment in just over two years.
Lessons learned? Challenges?
It is hard to own property out-of-state but with a good property manager, it is very possible to do well.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
No. I brokered the deal myself as I am a licensed agent and know the ins and outs of the paperwork and process.