First off-market Deal

[Pete Harper]

I just had my first off-market deal accepted.  I found it by researching the county tax records for multi-family properties in the market I was interested.  I then sent out "yellow letters" to all the properties that met my criteria.  One of the owners responded and we have been able to negotiate a deal.  

12 unit apartment complex; 6 two bedroom and 6 one bedroom units. 1960s, single story, slab construction, four sides brick, C condition, fully rented.  Final sales price is $425,000, $72,000 gross annual rent, 13.5% cap rate, $320/door.  Seller has agreed to replace the roof for this price. $44.74/sqrft.

Our plan is to renovate the units as they become available.  $60,000 budget, After renovations $86,000 gross annual, 14.5% cap rate, $400/door.

[Pete Harper]

@Irwin Velez

I searched all the multifamily properties on the county CAD sending letters to all properties. We are very small rural county so the list was not very long. Blind list, everyone received a letter.

Without making this a political post. Seller was anxious to sell before the November elections. He asked we close before October 30, 2020. Reading between the lines he is a Trump supporter and expects Trump to loose in November. He wanted to cash out of real estate out of fear of Democrats winning. I can now say I have benefited financially from the Trump Presidency.