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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  • Investor · Miami, FL · Member since 2013 · 377 posts · 258 votes
    5y

    @Nicole (Dunlap) Pendergrass

    LOVE LOVE LOVE!

    I gotta make sure I get my sock game right on my next closing! Major 🔑

    Thanks for sharing.

  • Rental Property Investor · Boston, MA · Member since 2020 · 45 posts · 38 votes
    5y

    @Nicole (Dunlap) Pendergrass Congrats Nicole! You deserve it and what a much needed story as we look into the new year with new beginnings. You get it girl! 💪🏻✨

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

    @Steve K. Def not gonna paint the brick! Love how original brick looks anyway... But thanksnfornthat too didn't know that 🤗

  • MA · Member since 2020 · 4 posts · 2 votes
    5y

    @Nicole (Dunlap) Pendergrass thank you for sharing your experience. Coming from the Bronx now in Boston I could have never imagined the position I'm in today. I have owned my house for 7 years had 3 kids and now built $200k equity. I'm thinking HELOC for my next property. Any words of advice?

  • Real Estate Agent · Chantilly, VA · Member since 2016 · 245 posts · 61 votes
    5y

    That's fantastic @Nicole (Dunlap) Pendergrass.

    When you cash refinanced, did the bank look at your credit and other income sources, or did they let you refinance based on the income produced on the property?

    What was LTV they gave?

    Thank you!

  • Rental Property Investor · Cincinnati, OH · Member since 2020 · 62 posts · 64 votes
    5y

    @Nicole (Dunlap) Pendergrass Congratulations, ver inspiring to see action taken and your success as a result! The details make this such an informative post, thank you for sharing! Strong pick on the socks!

  • Rental Property Investor · Lexington, KY (lexington) · Member since 2020 · 10 posts · 6 votes
    5y

    @Nicole (Dunlap) Pendergrass

    Congratulations, That’s so awesome !! This is exciting!

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

    This is a great story and I wish you success... can we get a peek at the numbers involved here? 


     Sure!  

    Purchase Price - $360k

    Total OOP ~ $103,000 (25% Down Payment $90k; Inspection+Appraisal $2,800; Closing costs ~$10K)

    Put down earnest of $10k

    Current Rents range from $480-$600 for the five 1-bedroom apts - market in 'as-is' condition should be around $650-$700, once renovated will be a little higher

    The only 2 bed apt is vacant so we will be renovation and bringing up to market asap which should be around $850-$900

  • Danny RandazzoPro Member
    Apartment Syndicator · Charleston, SC · Member since 2016 · 973 posts · 728 votes
    5y

    @Nicole (Dunlap) Pendergrass congrats. What was your goal and or reason for wanting to buy this property?

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

    Congrats that’s awesome! Are the tenants on a month to month lease, or yearly lease? Are you nervous at all buying a property with existing tenants in it?

    They are currently on month-to-month. Honestly you'd rather buy a property that is cashflowing... for a single fam rental you may want it delivered vacant at closing, but that's not normally the game plan for multi's.  Unless you are well capitalized and can afford to pay all the bills while you turn units and get it rented, but that kind of play is a little riskier.  Sometimes your tenant base does need repositioning as well, but that's why you hire a good property manager and plan for the possibility of non-payment ect upfront.

    You should be buying on current NOI, but if the building's empty, then what???

    So to answer... Nope, not nervous!

  • Rental Property Investor · Jacksonville, FL · Member since 2015 · 342 posts · 142 votes
    5y

    @Nicole (Dunlap) Pendergrass Boom! There it is! Welcome to the other side and CONGRATULATIONS!!!

  • Chris De CellePro Member
    Rental Property Investor · Los Angeles, CA · Member since 2016 · 41 posts · 28 votes
    5y

    @Nicole (Dunlap) Pendergrass CONGRATS! Love brick buildings and your sock! Go GET ‘EM!

  • Member since 2020 · 3 posts · 2 votes
    5y

    @Nicole (Dunlap) Pendergrass this is so wonderful!!! Congratulations Nicole!!! 👍🏾👍🏾👍🏾❤️

  • Member since 2019 · 27 posts · 17 votes
    5y

    amazing! congratulations!

  • Member since 2019 · 182 posts · 45 votes
    5y

    @Nicole (Dunlap) Pendergrass congratulations Nicole. I am very happy for you. Do you mind if I im you to learn more about your experience if you don’t mind

  • Investor · Atlanta · Member since 2016 · 57 posts · 54 votes
    5y

    Congrats! Thanks for sharing your story. Thanks for the inspiration as well!!!

    Keep it up!

  • Real Estate Agent · Minneapolis · Member since 2019 · 338 posts · 219 votes
    5y

    Incredible! Congrats

  • Real Estate Agent · Kansas City · Member since 2020 · 14 posts · 9 votes
    5y

    This is such an inspiring story! Thank you for sharing with us and CONGRATS! 

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

    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!  

     The basement I don't have a clear picture bc I was taking video, so I tried to screenshot portions to give an idea of basement.  The garage once we finally struggled to get it open was inaccessible... literally the entrance was filled to the top with no path to walk inside lol

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

    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.

    Yeah I actually thought about that, but will prob let the PM keep anything she wants or could use in there for other properties - relationships!  Plus I live almost 2 hr drive, so I know I won't be going to look through it... I'll be looking for next deal!

  • New to Real Estate · Fresno, CA · Member since 2020 · 2 posts · 1 vote
    5y

    Incredible story and perseverance. So inspiring, thank you for sharing.  

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

    @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!

    You can definitely overcome that!  You have no choice when you're backyard is too expensive... its really all about the team you have on the ground in the area, that's where networking comes in big time!  You can also try to find a partner that can be boots on the ground" in whatever market you're looking in (finding a good team/partner is not always easy and may include some growing pains, its inevitable - but it's necessary).  Let 2021 be there year you break that limiting belief :-)

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

    @Josiah Patrick Zebarth @Frank Vanegas @Christian Decker @DJ Dawson @Taylor Wrice-Brooks @Saudi Garcia @Ivan Ng @Chris De Celle @Mitchlyn D. @Sonia N. @Charleston Moss @Maria Koch @Kevin Leonce @Tom Wagner Thanks you all SO much, I appreciate the kind words and support! def a great way to start off the new year and I'm glad my story can give some hope that things will work out if you put the work in!

    @Justin Bowman @Andy Crawford - I like to give as much details as possible, it makes it more "real"

    @Enrico Angella - thanks! One of my mentors invests in the US from New Zealand, so you can do it!

    @Timothy Lewis - the socks are a MUST lol, you gotta get some

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

    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 :-) 

    Very perceptive :-)  Love that scripture and yes I was raised in the church.... I think faith has just been instilled in me and it's something I can't shake!  That coupled with a little bit of naiveté sometimes (LOL) keeps my feet moving.  The cross is actually the F in faith :-)

    Life changing is the best description!

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

    @Nicole (Dunlap) Pendergrass thank you for sharing your experience. Coming from the Bronx now in Boston I could have never imagined the position I'm in today. I have owned my house for 7 years had 3 kids and now built $200k equity. I'm thinking HELOC for my next property. Any words of advice?

    Niiiiice!!! Love to hear this!  Yes Ill message you and at least tell you want I did as an example :-) 

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