8 Unit Multi Family in downtown Manchester.
Investment Info:
Large multi-family (5+ units) buy & hold investment.
Purchase price: $500,000
Cash invested: $100,000
8 Unit Property consisting of four Studios, three 1 bedroom's and one 2 Bedroom units.
What made you interested in investing in this type of deal?
Cashflow plain and simple. For me this was a big piece of my buy and hold strategy.
How did you find this deal and how did you negotiate it?
This was an on market deal. I placed and full price offer as it was significantly undervalued but was passed over. I persisted and kept coming back as I noticed it sitting on the market for month's after two other buy's fell through I was given the opportunity to close the deal.
How did you finance this deal?
Conventional commercial financing 20% down 5 year fixed on a 20 year term.
How did you add value to the deal?
This will be dealt with as a shell. The plan is to completely rewire, replumb and add new kitchens and baths over time.
Lessons learned? Challenges?
Don't give up. By continuing to follow up time and time again eventually I was selected as the next person up because I kept contact with the realtor.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
No I choose and have choosen not to use a realtor in any of my deal. Lenders are chosen by who offers the best rates and terms. My best advice is shop around.