FINALLY Closed on My First Multi-Family Apartment Complex
We finally closed today on our first multi-family apartment complex! Seems like such a long road after making the decision to transition out of SFH last Fall and selling off our portfolio in the Spring. I ramped up my education quickly as I knew nothing about cap rates, NOI, due diligence, etc. The pressure was really on when we elected to do a 1031 exchange. We were under contract on a property pretty quickly but after numerous extensions the deal fell apart. Thankfully, we had a good backup plan and used what we learned in the first deal to nail it on the second. Much hard work in front of us but we will celebrate tonight!
Originally posted by @Tony Castronovo:
Hi @Joseph M.. Based off our purchase price plus our expected renovation costs we are expecting between 10-11% cap rate. A lot has to go right of course....but very achievable. ;)
Nice, that's a great cap rate especially in this market. Best of luck! Look forward to hearing more of your experiences as things progress.
@Tony Castronovo - I am currently working on my first deal right now (not counting my chickens before they hatch though). I grew up in Bryan/College Station and also went to Texas A&M, so the B/CS area is what I know best and that is where my focus has been.
@Tony Castronovo Congratulation on the new apartment, it's a great feeling and a big accomplishment to own your own apartment. Now the work really begins :-).
We are always here for you if you need any help.
Thanks @Dave Chapa! Yes, the work really does begin. It's been 2 weeks now and there has been a tremendous amount of activity. And to be honest, there could be more but we are trying to be gentle with our tenants and not expose them to too much change too quickly (although some of it is unavoidable).
Appreciate the offer to help and you know I will be taking you up on that. Maybe if you are interested in checking out the property we can take a ride out there together sometime soon.
@Tony Castronovo yes, I would like to see your apartment, call me and we can make a time for the trip, I can meet you in Katy. We can stop by my apartment on the way out and I can show you how we renovated, maybe it will give you some ideals.