Off-market big multi-family

Real Estate Deal Analysis & Advice
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Off-market big multi-family

Bella Butler
Member since 2018 · 18 posts · 15 votes

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Off-market big multi families of 4 units.

What made you interested in investing in this type of deal?

In a great location and neighborhood of the town, over 6000 sq ft total, each unit at least 2 bedrooms and some could be converted into 3 bedrooms, great potential to increase rent and the value of the property with some proper work done.

How did you find this deal and how did you negotiate it?

Off-market, found by driving past it and got the owner on the phone afterwards.

How did you finance this deal?

Equity partnership. Savings and the loan.

What was the outcome?

After a few years, 2 units have been upgraded, better rent and greater cash flow.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Should have fractured the cost of the balcony rebuilding in the price in our offer. It cost us over $6,000 to fix the balcony right.

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  • Jamie Rose
    Real Estate Agent · Anchorage, AK · Member since 2017 · 294 posts · 182 votes
    7y

    @Bella Butler - way to go! What will be next for you? Do you want to do more 4-plex/quads? Did you get the owner on the phone through a For Rent sign?

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  • Bella Butler
    OP
    Member since 2018 · 18 posts · 15 votes
    7y

    That's a very good question. I had a light bulb moment a few months ago while I was listening to a podcast show talking about when in a crazy real estate market ( the reference here is Boston, MA), what you should do to stay rational and to take advantage of the situation. And what I had as a conclusion for the next step for myself is to be fearful and picker about investment when everyone else is fearless about investing in real estate. I also recall a lot of good points from the movie " The Big Short" though I never experienced it.  So for the next step, I plan to focus on helping people (especially foreign buyers) buy their first and second vacay homes here. Besides, I am going beyond the entry level where most of the players are, and going to pursue bigger residential and commercial development opportunities in-and-around the city of Boston, such as apartments, retail, office, mix-use, hotel, and warehouse repurposing, etc. Me and business partner will pull together deals by bringing individual investors, lenders, and developers in the same deal.  We will pursue the double-down brokage relationship where we make sales commission more than one time or get small portions of equity in each deal instead. 

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  • Dan K.
    Rental Property Investor · Boston, MA · Member since 2012 · 257 posts · 139 votes
    7y

    Congratulations Bella.

    Caution and focusing on primary 9-5 income is always good. From an investment perspective, you might want to narrow down what you're looking for. I completely understand the feeling of wanting to get in on a good deal, no matter if it's office, hotel, warehouse, etc., but each investment type is very different and has different groups to network with. When networking, it's hard to be taken seriously by people in the industry if it seems like you're trying to get in on every type of real estate. There are people who have made absolute fortunes in residential real estate who know nearly nothing about office RE -- the converse is of course also true.

    Of course researching the various classes of investment and figuring out which seem best for your and your partner is highly encouraged!

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