Closed 18-Unit Multi-Family Deal

[Nick Brown]

Investment Info:

Large multi-family (5+ units) buy & hold investment in Moncks Corner.

Purchase price: $740,000
Cash invested: $230,000

18-unit multi-family; value-add opportunity near Charleston, SC.

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

I'm always looking for value-add multi-family opportunities; and I've loved the Charleston area since being stationed there in the Coast Guard.

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

This off-market deal came together with the right group of partners at the right time. Originally, a local REI put the property under contract and immediately (and unfortunately) experienced some personal issues. He was friends with one of our partners have asked if we would be interested in an assignment. We loved the deal and he assigned the contract.

How did you finance this deal?

75% traditional financing; invested $125K from current assets and raised $125K from private investors. Currently paying private investors 10% preferred return and gave them 10% of the equity.

How did you add value to the deal?

We are adding approximately $180K worth of value through flooring, painting, and cabinet and countertop updates. Additionally, the rents are severely below market and we plan to raise those over the course of the next 18 months.

[Yonah Weiss]

Congrats @Nick Brown! Looks like a great deal. Out of curiosity, how are you managing the property? I am looking at deals in NC & SC currently, but have been under the impression that under 40 (some say 60) units, hiring a full time on sight PM is not economically sound.