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

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

    This is great. Congratulations! I would love more information from this post. I'll search and probably figure out a lot myself but I'm going to ask anyway. What is the MIH Mastermind Group? What is the Wheelbarrow Profits platform?

    I'd love to know the backstory on how you found this property. Did you work with a realtor? Was the property listed on the MLS? Curious about your processes.

    Wishing you success in your endeavors.

    Yeah all the answers are in the post or comments, but I know its a lot to read through, had no idea this would get so many responses!

    Wheelbarrow Profits is a education platform//networking community by Jake and Gino - you'll find if you google.

    MIH Mastermind (Make It Happen) - is run by Marco Barbaro (Gino's younger brother) and Hadar Orkibi (he's responded in the comments, but for some reason it won't let me tag him now) - it's not part of wheelbarrow Profits, it's a standalone group

    Yes this property was listed on MLS, and my partner and I worked with the realtor (who is also our PM) that he had previously worked with on other deals :-)

  • Rental Property Investor · Denver, CO · Member since 2020 · 7 posts · 2 votes
    5y

    @Nicole (Dunlap) Pendergrass - Nope, I already did that starting in 2010 with my first purchase: an FHA duplex in Denver CO. My wife and I prefer a detached home for a little more privacy these days. We are looking for either a couple 2-4 unit residential income properties or a 5+ unit multi-family as a pure investment.

    So much fun reading this thread and all the replies. The gears are turning. :)

  • Rental Property Investor · TX · Member since 2017 · 42 posts · 26 votes
    5y

    this is awesome! congrats!

  • Rental Property Investor · Indianapolis, IN · Member since 2011 · 31 posts · 6 votes
    5y

    What a way to end the year. Congrats to you and your team!

  • Rental Property Investor · Philadelphia, PA · Member since 2020 · 7 posts · 5 votes
    5y

    @Nicole (Dunlap) Pendergrass Motivating

  • Lender · Chicago, IL · Member since 2010 · 149 posts · 127 votes
    5y

    @Nicole (Dunlap) Pendergrass Congratulations!!!!! I love your story of persistence, perseverance,  commitment and sacrifice to reach your goal. This is just the beginning. Stay Strong!!!!

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

    @Nicole (Dunlap) Pendergrass - Nope, I already did that starting in 2010 with my first purchase: an FHA duplex in Denver CO. My wife and I prefer a detached home for a little more privacy these days. We are looking for either a couple 2-4 unit residential income properties or a 5+ unit multi-family as a pure investment.

    So much fun reading this thread and all the replies. The gears are turning. :)

     Oh nice! well doing the first house hack was the biggest step!  A colleague once told me, if you can run 3 miles you can run 13, you just told yourself to stop at 3 - I started training for my first half marathon the next week LOL - she was right lol

    Wishing you guys the best, you can def do a few 2-4 units or 5+ unit easily! Please keep me updated with your progress!

  • Member since 2019 · 14 posts · 4 votes
    5y

    @Nicole (Dunlap) Pendergrass

    Super happy for you. What a way to end the year and a fantastic setup for 2021.

    This milestone—“check”

  • Member since 2020 · 23 posts · 3 votes
    5y

    @Nicole (Dunlap) Pendergrass congratulations with the major step towards your goal! Grew up near Allentown so very familiar with the area! Best of luck with rest of your investing!

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

    Oh man oh man!  You guys do not understand how deeply touched I am that story could possibly be inspirational to people!  It's truly overwhelming!  I want to say thank you to everyone but please forgive me If I miss you (its hard to keep up with all the comments!)

    @Wale Lawal @James Lauer @Yadlynd Cherubin @Laurie Kenia Farreau @Account Closed   - Thank you all SO much for your kind words, encouragement and well wishes.  Positive feedback from people like you from BP just inspires me and helps me keep going :-)

    @Hadar Orkibi @Neil Schoepp - thanks for you encouragement as well, where would I be without MIH!?!?!  

    @Yonah Weiss - thanks Yonah, appreciate it!  I need to see if it makes sense to do a cost seg on tis 6 unit... if not now at some point I'll need help from Yonah the magic man!

    @Pride Davis - I need a shirt that says "I do dope thangs" lol - btwn I LOVE your name!

    @Darcy Reynolds - you're lucky to be wrorking in the field as a realtor, you have a big advantage and network of resources, I know you can do it.. dont wait to jump in :-)

    @Joe Edwards - LL at "punch you in the face" type of industry... it definitely is, and I've been punched in the face a few times, but you're right, it gives you tough skin and prepares you for success!

    @Victor J Delarosa - wishing you the best of luck on that first deal, hopefully the seller accepts your offer!

    @Andrea Hardaway - thanks! You're actually in a good market, I just listened to a BP podcast with someone who is doing big things in your area... I'll message you the episode!

    @Shira Albert - I have to remind myself all the time that it takes time (no matter how much I want to get "there" fast!)... just put your head downa nd keep trudging along... small consistent effort will turn into big change before you know it!  Learn from books ect, but take ACTION... learning by doing is completely different!

    @Avihay Ohana - LOL yes thanks! I know people thought I was crazy joining when I was that pregnant lol... but I saw it as a time crunch to get it done quick, not a road block (but maybe i am a little crazy lol)

    @Howard Young - I'm glad my story could motivate... don't let anyone distract you from the path you're on!

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

    @Nico Doss thanks yeah I def think so and can feel momentum building for 2021!

    @Noah Howells where are you located now? Have you ever thought about investing in Lehigh as your marekt? Esp since you have intimate knowledge of the area!

  • Cory WallacePro Member
    Rental Property Investor · Norfolk, VA · Member since 2020 · 53 posts · 38 votes
    5y

    @Nicole (Dunlap) Pendergrass congrats on new purchase and keep the momentum going. I like the socks!!

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

    @Nicole (Dunlap) Pendergrass congrats on new purchase and keep the momentum going. I like the socks!!

    Thanks Cory! Yeah man those socks were on my wish list for a while!

  • Hadar OrkibiPro Member
    Rental Property Investor · USA / NZ · Member since 2016 · 1k+ posts · 812 votes
    5y

    @Nicole (Dunlap) Pendergrass you are going from strength to strength and have been taking action, following your action plan, and Making It Happen. That's why you are successful. 

    Having a plan is one thing, executing it and been persistent while staying focus is another, and Accountability is a huge part of it!!! 

    Accountability Is The Glue That Ties Commitment To Results!!

  • Jeff HubertPro Member
    Realtor · Fort Lauderdale, FL · Member since 2013 · 101 posts · 30 votes
    5y

    Now that is good stuff to hear!  Congrats and good luck moving forward.  Here’s to a great 2021!!

  • Investor · Dallas, TX · Member since 2019 · 15 posts · 32 votes
    5y

    @Nicole (Dunlap) Pendergrass

    Congrats

  • Developer · NY/NJ/PA · Member since 2018 · 758 posts · 935 votes
    5y

    Congrats! I own 60 units in center city. If you ever need help, feel free to reach out

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

    @Jeff Hubert @Trey Green 

    Thanks so much! 2021 will be great :-)

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

    Congrats! I own 60 units in center city. If you ever need help, feel free to reach out

     I'd love to talk! Funny I'm in the middle of listening to your podcast episode with @Jeremy Moyer and Tejas.  Some more experienced insight into Allentown would be great :-)

  • Buffalo, NY · Member since 2015 · 3 posts · 1 vote
    5y

    @Nicole (Dunlap) Pendergrass

    Congratulations

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

    @Nicole (Dunlap) Pendergrass

    Congratulations

     Thanks so much!

  • Rental Property Investor · Utrecht, Netherlands · Member since 2016 · 21 posts · 11 votes
    5y

    @Nicole (Dunlap) Pendergrass inspiring story, to say the least! Congratulations and looking forward to hearing more from you! Keep the momentum going!👊

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

    @Nicole (Dunlap) Pendergrass inspiring story, to say the least! Congratulations and looking forward to hearing more from you! Keep the momentum going!👊

     Thanks so much!  I really appreciate the encouragement :-)

  • Rental Property Investor · Vallejo, CA · Member since 2018 · 34 posts · 21 votes
    5y

    Bravo!  I plan to follow in your footsteps soon.

  • Real Estate Broker · Triad, NC · Member since 2016 · 23 posts · 6 votes
    4y

    Nice,

    How to Evaluate the Price of a Multifamily Property

    1. Determine the Net Operating Income (NOI)

    2. Look at the Cap Rates

    3. Due Diligence

    4. Location, Location, Location

    5. Perform a Comparable Search

    6. Go See the Property for Yourself!

    Join Multifamily AP360 Virtual Summit to gain more knowledge about the multifamily investing.

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