My first commercial apartment building!

My first commercial apartment building!

Rental Property Investor · Bronx, NY · Member since 2011 · 193 posts · 322 votes

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: 

  1. There's no such thing as failures, only lessons. You only lose if you quit. 
  2. 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/...

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Investor · Glen Burnie, MD · Member since 2020 · 2 posts · 6 votes
5y

Congratulations!!!

Your story is very motivational.

I'm now more determined

 Cheers to many more!!

See this reply in the discussion

179 Replies

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  • New to Real Estate · Cleveland, OH · Member since 2020 · 27 posts · 17 votes
    5y

    @Nicole (Dunlap) Pendergrass

    Congratulations!! I’m so happy for you. As a young investor who is so new to everything, it just puts a big smile on my face to see other women taking on the world head first and accomplishing goals. Hope 2021 brings you even more greatness!! ❤️

  • Rental Property Investor · Centralia, WA · Member since 2017 · 75 posts · 85 votes
    5y

    Congratulations!  Do you have pictures of the "hoarder" basement and garage?  I'm always fascinated with the amount of junk/stuff people accumulate over time and the before/after pictures after a clean up.  Again, congrats!  

  • Real Estate Agent · Sacramento, CA · Member since 2014 · 8 posts · 7 votes
    5y

    Thank you for the post and Congratulations!

    I liked the part about the "hoarder" filled basement and your not making it a sticking point and agreeing to clean it out for the seller. Picking your battles and risk/rewards is key. A buyer can create extra value to the seller by taking care of a "problem" for them.

    Wishing you all the best with the 6 units and beyond!

  • Realtor · Boulder, CO · Member since 2016 · 3k+ posts · 5k+ votes
    5y

    Congrats! Cool looking property, too. I love the rounded awnings, soffit corbels, and paneled bay windows. Classic. Red brick and green accents= Christmas colors too! Best of luck with the new property.  

  • Dallas, TX · Member since 2014 · 31 posts · 19 votes
    5y

    @Nicole (Dunlap) Pendergrass

    Awesome. Congratulations!

  • Staten Island, NY · Member since 2015 · 17 posts · 15 votes
    5y

    Congratulations on your deal, may it be the first of many profitable ones. I love the story too,very inspiring. I just want to put my 2 cents in about the "hoarder filled basement" you mentioned. If it's reasonable for you to do so, take some time and look through the junk, you never know what might be in there that might be worth something. An old baseball card, painting or other collectible can bring some money. Tools and equipment are usually easy sells,quantities of brass or copper can be sold for scrap by the pound. Years ago I bought a house that had  some "junk" in it, long story short, some of the "junk" I sold for $2600. I know that isn't exactly a fortune, but it's better in my pocket than in the garbage.

  • Rental Property Investor · Bronx, NY · Member since 2011 · 193 posts · 322 votes
    5y

    @Howard Chen Yeeees! Perfect! You network is your networth! 💪🏾

  • Specialist · PA · Member since 2016 · 143 posts · 71 votes
    5y

    @Nicole (Dunlap) Pendergrass Wow!, Congratulations! You turned adversity into a great new opportunity.

    I am about 45 minutes from Allentown but couldn't get over fear to invest out of town. I checked that area 2-3 years ago.This year, I could overcome that.

    I see that you're from the Bronx. I used to live in greater NY area. Kudos for investing long distance. One of my business partner says there are some great opportunities in the NYC and I say but...many buts...

    What were your loan terms on Commercial, if you don't mind sharing? You can PM me, Thank you!

    All the best!

    p.s:- Nice socks!

  • Investor · Redlands, CA · Member since 2015 · 82 posts · 48 votes
    5y

    Inspirational! Thanks for sharing and best wishes for 2021!

  • La Vergne, TN · Member since 2016 · 7 posts · 2 votes
    5y
    congrats, I'm looking at my first deal now and this greatly inspires me
  • San Diego, CA · Member since 2020 · 2 posts · 2 votes
    5y

    @Nicole (Dunlap) Pendergrass Congrats! I loved reading your story and the great outcome. An inspiration for me as I’m just getting started in real estate! Plus I love your socks! 😁

  • Investor · Sacramento · Member since 2019 · 34 posts · 22 votes
    5y
    Originally posted by @Nicole (Dunlap) Pendergrass:

    @Howard Chen Yeeees! Perfect! You network is your networth! 💪🏾

    Yes Mam! 

  • Rental Property Investor · Bronx, NY · Member since 2011 · 193 posts · 322 votes
    5y
    Originally posted by @Benjamin Aaker:

    Congratulations!  Have you considered not cashing out at year 1 and waiting a little longer? The mortgage will stay lower.

    The mortgage doesn't necessarily have to end up being higher... depends on terms, but payment could end up being close to what they are now. Will have to wait and see what rates and terms are avail when we look to refi. And even if the mortgage is a little higher, As long as the building still cash flows I'm good.  To me its more about the opportunity cost and velocity of money.  If I can reuse the same funds I started with to acquire the second one, why not? why wait? 

    But just  depends on your individual goals :-)

  • Rental Property Investor · Denver, CO · Member since 2019 · 76 posts · 70 votes
    5y

    @Nicole (Dunlap) Pendergrass

    Way to go!

    Best, Josiah

  • Rental Property Investor · Bronx, NY · Member since 2011 · 193 posts · 322 votes
    5y

    @Thomas McTier - Thanks! And grinding is in my blood.. grew up seeing my mom work 2-3 jobs most of my childhood. Sometimes I still feel like I'm not doing enough!

    @Zachary Burgart @Raphael Ramos @Mike L. @Brant Jones @Jaquetta T Ragland @Josiah Patrick Zebarth - Thank you all so much! 

    @Desha Charles - All it takes is one! My house hack changed my financial future! It's not all roses and sunshine, but the good far outweighs the bad in my opinion, you can do it, let me know when you close we'll do zoom champagne!

    @Keenon Moorman - very humbled that my story is inspiring, you'll get that first deal done, "just keep swimming"!

    @Vanessa Shields - education (but not analysis paralysis) and a great mentor/network is key to the confidence in getting started, buy you some socks or some "thing" that you cant use until you close! Itll be motivating... delayed gratification  :-)

    @Abby Link - Def need more women investors! I'm all for the under-dog making it happen, esp those who are not normally represented in the industry and haven't had access and opportunities before...  It's a new day! :-)

  • Rental Property Investor · Bronx, NY · Member since 2011 · 193 posts · 322 votes
    5y
    Originally posted by @Steve K.:

    Congrats! Cool looking property, too. I love the rounded awnings, soffit corbels, and paneled bay windows. Classic. Red brick and green accents= Christmas colors too! Best of luck with the new property.  

    LOL! Yeah I guess I can look at it as it was "wrapped" for us, but sorry to tell you Steve, but I def plan on changing the colors on the outside... it needs an updated/modern touch lol

  • Rental Property Investor · Bronx, NY · Member since 2011 · 193 posts · 322 votes
    5y
    Originally posted by @Stephen Knapp:

    Thank you for the post and Congratulations!

    I liked the part about the "hoarder" filled basement and your not making it a sticking point and agreeing to clean it out for the seller. Picking your battles and risk/rewards is key. A buyer can create extra value to the seller by taking care of a "problem" for them.

    Wishing you all the best with the 6 units and beyond!

    Yes agreed! Def want to be easy to work with and add value... but I'll be honest and say I wasn't thinking of that at first... there were other issues in inspection that we decided we'd take care of and only ask her to do the clean out, thought that was a fair compromise... but I guess not LOL

  • Member since 2020 · 7 posts · 3 votes
    5y

    @Nicole (Dunlap) Pendergrass awesome work! So exciting to see examples!

  • Rental Property Investor · Rome Italy · Member since 2020 · 42 posts · 19 votes
    5y

    Hey Nicole, thank you so much for sharing your journey. It was very interesting to read all the details about it, I found it really inspiring. 

    My wife and I are currently looking to close our first small multifamily deal in the States. I've already been involved in multifamily investments in my home country, but there's so many differences in the US, so much to learn still!

    Wishing you a happy new year, and congrats on your closing!

  • Rental Property Investor · Columbus, OH · Member since 2015 · 184 posts · 162 votes
    5y

    The theme I hear in your writing is 'life changing!' Your life, your family and the generations to come will forever be changed because of your choices, sacrifices and now, your accomplishments!! :-) Your story also illustrates a life of faith: "Now faith is confidence in what we hope for and assurance about what we do not see" (Hebrews 11:1 - I believe I see a cross on your mask in that picture, so I feel comfortable quoting the Bible here). Well, now you have crossed over from Egypt to the Promised Land, a place where a whole new world of opportunities is opened up, and where you will CONTINUE to see miracles and blessings if you keep walking in faith :-) 

  • Realtor · Boulder, CO · Member since 2016 · 3k+ posts · 5k+ votes
    5y
    Originally posted by @Nicole (Dunlap) Pendergrass:
    Originally posted by @Steve K.:

    Congrats! Cool looking property, too. I love the rounded awnings, soffit corbels, and paneled bay windows. Classic. Red brick and green accents= Christmas colors too! Best of luck with the new property.  

    LOL! Yeah I guess I can look at it as it was "wrapped" for us, but sorry to tell you Steve, but I def plan on changing the colors on the outside... it needs an updated/modern touch lol

    Purple accents instead of green then? Whatever you do, though, don’t paint that brick! It’s popular to paint brick these days (thanks Joanna Gaines), but brick is actually not meant to be painted (and painting it can actually cause structural problems too). Word to the wise. 

  • Rental Property Investor · Queens, NY · Member since 2020 · 14 posts · 7 votes
    5y

    thank you for sharing @Nicole (Dunlap) Pendergrass wishing you more success!

  • Real Estate Broker · Edmonds, WA · Member since 2020 · 54 posts · 32 votes
    5y

    @Nicole (Dunlap) Pendergrass

    Well done! Thank you for outlining your journey here as well! What a ride!

  • DJ DawsonBusiness Member
    Real Estate Agent · Sacramento, CA · Member since 2015 · 394 posts · 259 votes
    5y

    @Nicole (Dunlap) Pendergrass

    No accidents!!!!

    Congrats on all your success from Sacramento, CA 😁

  • Real Estate Consultant · Washington, DC · Member since 2016 · 39 posts · 17 votes
    5y

    @Lanre Olaleye right! We need all the help we can get in this Maryland market for sure.

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