YES! Finally did my first multifamily deal! 10 pack of townhomes

[John L.]

First of all, huge thanks to Cody here on the forum.  He asked me not to bring up his company name but I can't imagine there are tons of people with that name active on here (and I'm not sure how to highlight someones name in a new message?)

Here is the deal specs:

10 townhomes near Galleria
Purchase price: $231k each ($2.31m total)
Rent is about $2,100/each (Current rent roll is just over $21,000. Seems low based on my comps).  So not quite "1%" but not bad given they're new'ish and tenants pay all utils. 
Loan:  80%  4.6% interest, 25 year amortized.  Payment is about $10,400
insurance, property tax, management comes to about $700/month for each.
Tenants pay all utils.

So that's $17,400 in costs so about $3,600 left a month.

I looked at the owners financials and there were zero empty in the last two years (beyond someone moving out, and someone else moving in with a few weeks downtime).  This is because rents are under market.  So I could add some income to bring it to market rents, but then take out some occupancy.  Or just leave it as is.  

HOW I BOUGHT: My down payment came from about 1/2 savings, and 1/2 friends and family.  It was $225k from me and about $225k from F&F.  My F&F loan will be about $1200/month (i'm giving them 5%.  This was $ they don't need right away that was making 1.8% in the bank for them.  So win/win.)

I'm left with about $2,400/month, or $28,800/year which is a 12%+ return on my money, AFTER paying down debt each month. And if they appreciate at just 2% a year, I'll have $46k/year in appreciation which would change my cash on cash from 12.8% to 33%.   And that still doesn't factor in debt reduction!

I'm SO happy to finally have got the nerve to take the first steps.

I've seen these "new deals" posts that seem to be a template on the site you can share but couldn't figure out how to do it.

I very much hope this helps someone else do the same.  I realize not everyone has a huge amount of $ to get started but when I talked to Cody he got started the same way.  Bought something small and just started to grow.  To think my decision to finally make the leap into multifamily came from running across a newspaper story about how Fat Property bought the building my friend lives in.

I'm still at the START of my journey but if anyone has any questions I'd love to help and return the favor I was given 

[Stanley Ezeadi]

Congrats on getting started John! I just got my potential first under contract. Starting small and growing from there is the way to go, although I have no where near the capital you started with. I think that's what's wrong with some newbie investors like myself is that we look for home run deals and then lose motivation when we see the price tag. Starting small is OK. Thanks for the post!