20 unit apartment building with no money down!

[Rob Wilson]

I've been in real estate management and investing for 9 years and I have a recent acquisition that I hope will motivate others.  I've been sitting on the sidelines too long, it's time to contribute!

I sent out 600 letters to local owners of multifamily properties and had quite a few calls from the letters.  Sent them 3 times before I reached the right owner on the right day, where he was just mad enough about landlording to want to sell his property.

20 Unit apartment complex

Purchase Price: $285,000 (approx 15k unit)

30 year amortized loan 5% with a 5 year call (100% owner financing, but he did take a 2nd mortgage on another house I own)

Tax Return NOI average: $32,000 over the last 4 years

Expected NOI after proper management: $50,000

Equity after stabilized: $100,000-$150,000

As purchased the property cash flows around 1k a month with no money down!  After the property is stabilized it will net around $2500 a month.

Bonus:  There is a back lot that came with the apartment complex and is of no use to the operation of the complex.  I have it under contract for $72,500 cash.  Pending zoning approval this lot will be sold and I will be able to put some cash into my pocket.

Thanks for reading my deal!  I hope this motivates some people that these deals do exist.  I can't wait to read some of the comments.

Rob

[Edgar Collado]

Congratulations!  Great find!  Direct mail is such a great tool that is not really leveraged by many people.  I was a real estate agent in another state some time ago and one of my key lead generation techniques was direct mail.  It really worked well for me.  Not only due to the call backs I received, but also because when I cold called the area most people knew who I was since they had received my mailers a few times.  Way to go!  I'm hoping to get back into real estate over the next several months and will definitely have direct mail in my strategy.  Wishing you continued success!