All Forum Posts by: Lauren Griffin

Investment Info:

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

Purchase price: $442,500
Cash invested: $242,000

I only had 10 days to analyze this property. I used cash and a LOC to purchase this property, we have been making improvements i.e replacing roofs, appliances, updating interior and exterior, etc. We will be refinancing in March and my goal is to recoup all of my cash and finance at 100% with nothing down.

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

It was a good deal and potential for increase

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

The second deed of trust holder that was foreclosing called me and asked if I would be interested in purchasing. So I worked with the current owners, and second deed of trust holder to come up with a purchase price that would clear the first and second. A price where everyone was happy.

How did you finance this deal?

Half cash and half from a LOC

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Just myself :)

@Tim Herman I have already secured financing and it is only 15% down with that interest rate. My mortgage payment is in the calculations as well. Thanks for replying!!

Thank you! I own a real estate firm as well and we will be handling the property management on this complex, I know its low right now. Also, I have employees that work on the flip houses that will also be taking care of the repairs and maintenance on this project, but I agree. I think I estimated too low on the maintenance. 

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*This link comes directly from our calculators, based on information input by the member who posted.

Thank you for all of the feedback so far. Each unit is on their own meter for water (bill includes sewer) and electric. The $34.00 a month is just for an outside light, I know it will vary if I have vacancies. My insurance agent quoted $2800 a year to insur the complex, my loan would be for 25 years, 5% for 5 years. Each unit is 2 bedrooms 1 bathroom, the rental income is low right now because of poor management. I plan on keeping these units until they are paid off. 

$500k and no I haven't yet. 

I need some advice please! I have bought and sold real estate for the last 10 years and I have created a small rental portfolio. I am looking at purchasing a 14 unit complex that was inherited by a brother and sister. They do not have the time to manage the complex effectively or efficiently. They have high turn over and are fairly slow in trying to secure tenant when they have one or two vacant. The income a month right now is only $6,100. I can purchase this complex and my monthly payment to the bank which would include taxes and insurance would be around $3,600. Other monthly expenses are only a couple hundred dollars a month.. i.e $80/dumpster fee, $34/utility, $200 misc. Also I need to account for vacancies and maintenance. I know with my experience and my staff, I can turn these units around to generate close to $8,000/month before any expenses are paid. That would be my 5 year plan. 11 heat pumps are going to need to be replaced very soon, and that is $2,600 each. With that future expense in mind and knowing that each unit will need upgrades when vacant so I can turn them around and ask higher rent... I am still interested because I see the potential income. I want to buy and hold this complex, and have it in my portfolio as a retirement investment. What do you think? Good investment? Or no?