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.