We Just bought another 8 unit multifamily - thats 54 units now !

[Erin Wicomb]

5 reason why I dont think I can lose on this deal: 

1) We bought it off-market

Buying a property without a competitive bidding situation or having exposure to a ton of agents or buyers gives you a negotiating and competitive advantage (as there are no competitors). You are able to adjust the price and terms to help you get the deal done on your time.

2) The rents are/were significantly undervalued

The way you make money in commercial real estate is by improving the income, the average rents on these units were $1000 a month were there comps were $1700+ per month

3) The property is in a gentrifying neighborhood

This is not yet the best neighborhood in San Diego / Southern California but based on its location to downtown San Diego and waterfront its just a matter of time until the whole area improves. 

4) The owner was retiring

The previous owner has made tens of millions in real estate over the last 30 years and didnt care about getting the top dollar for his property as he is just 1031 exchanging into something making him 6% a year without any hassle. So he left quite a bit of meat on the deal. 

5) The property was well maintained and cared for. 

Even though the rents were really low the owner really cared for the property and some of the interior units really only need a light cosmetic renovation to get it up to market rents. 

6) BONUS we signed a master lease

We signed a lease for $2200 a unit for the next four years with a company that needs military housing. Boom value bumped up almost 1 million! 

[Erin Wicomb]

@Jason Etheridge Thanks bud - I've had many people that helped me get started along the way if you need help just let me know - I'm here to help and share the good the bad and the ugly