How I bought a 10 Family at 23 years old

[William ODonnell]

Investment Info:

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

Purchase price: $1,200,000
Cash invested: $400,000

10 Unit with a 4 car garage plus extra lot for parking.

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

I always drove by this property on my way home. I always looked at it and said "one day, I will own this property"

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

I found this deal through buying my first 2 family. The owner of the 2 family owned this property. I made a deal with him and told him that if he ever decides to sell the property, to let me know about it first. 1 year later, I made him an offer and bought the property.

How did you finance this deal?

Seller financing, 30% down.

How did you add value to the deal?

I raised the rents about $2,500 total.

What was the outcome?

One year later, I am receiving offers for $2M and it cash flows $6k per month

Lessons learned? Challenges?

I learned that very soon, I will need a property manager!