My first commercial apartment building!
The ink has dried! (long post alert lol)
Dec 23rd, my partner and I closed on a 6 unit building in Allentown, PA!
RE Investing is a marathon, not a sprint, but it's been a muuuuch longer marathon than I initially imagined when I first started studying RE, and I'm still just scratching the surface!
A little background:
- Studying real estate for the past 10 yrs-Jacked up credit in college and no $-Tried wholesaling and out of state rehab-rentals, nothing "worked"
- Sacrificed, slowly built up credit & savings
- Bought 3 unit building & house-hacked
FINALLY I started getting somewhere!
- Lived for free for a few years and appreciation allowed me to cash-out refi
The FIRST investment I made with my newfound equity? Into my EDUCATION and NETWORK! Multifamily had proven itself, but if I wanted to go BIGGER I needed coach and community
What I've learned:
- There's no such thing as failures, only lessons. You only lose if you quit.
- You MUST take massive ACTION... I was 7 months pregnant w/2nd child when I joined investment community. I had the "perfect" excuse to NOT get started.
The SECOND investment? This apartment building!
Some Property highlights:
- Property was listed and had a few offers but ours was accepted (have to act fast).
- Avg rents ~$200 p/month lower than market in as-is condition
- Once rehabbed, rents will be ~$100 higher
- One unit is vacant, so we can rehab and re-rent at market right away
- After inspection, only wanted the seller to clear out the “hoarder” filled basement & garage. Seller apparently didn't like that and tried to cancel contract, so we agreed to take care of the clean out as well (not all negotiations go your way but didn't want to lose deal over a few $).
Plan is to add value, cash-out refi in about a year or so, keep it for generational cashflow, and roll the proceeds from the refi into the next deal.
I'm excited about this deal, but even more excited about the open doors this is opening and the momentum I can fee building... opportunities are coming and prepping for a great 2021! .
A huge shoutout to Marco Barbaro and Hadar Orkibi for creating the MIH Mastermind group and for being there for support and guidance when I called in a panick! The group is fantastic and I love the daily interaction we have - the encouragement and support is unparalleled, to steal Anna Latysheva's phrase... it's a big group of "Yaysayers" LOL
Also I have to thank Gino Barbaro and Jake Stenziano for creating the Wheelbarrow Profits platform, putting "people first" and creating an entire community of go-givers. There's really sooo many other people to thank for their support along the way I can't possibly name everyone, but I have to at least mention my mom and my husband for both playing their part in getting me started on my education journey all those years ago...
Ok ok ok, I'm done, my oscar speech is over!
Oh y'all see my "closer socks" right?!? Popped the tag that morning
I posted about my first house-hack and all the initial issues here. Def need to do an update on how that 1st building changed the course of my investing - all it takes is one! Don't give up!
https://www.biggerpockets.com/...
