Multifamily investment in Amarillo, Texas

[Account Closed]

Investment Info:

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

From a solid D class property to a solid C, this apartment complex near downtown Amarillo opened my eyes to the amazing opportunity to force appreciation. In the last two years, I have more than tripled the NOI and improved the tenant base to make this apartment complex a safe, and affordable place to live near downtown Amarillo.

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

I wanted to scale my business.

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

I found this deal through networking and adding value to a fellow investor. Real estate is a team sport.

How did you finance this deal?

I have conventional financing through a local bank.

How did you add value to the deal?

I added value by renovating all of the interiors; I had 100 percent turnover almost as soon as I bought it. I also added storage units, additional parking, garage spaces and a laundry facility.

What was the outcome?

The NOI more than tripled; the tenant base improved significantly.

Lessons learned? Challenges?

I would not buy such a heavy lift again; however, I don't regret my purchase because it brought me into the multifamily space.

Now, I focus on acquiring properties with some value add, but not a heavy lift and I want at least 88 percent occupancy.