Multi-Family Rookie - My Journey

[Thomas Willingham]

Introduction: I have been in real estate as a side hustle for 20y. I have Flipped and rented SFR and a few duplexes. I currently own about 40k sqft of Commercial space over 4 different properties mostly medical space. We have renovated unique spaces into class A medical. How do you find a good deal? Unique up on it. ;)

This is my first venture into multi-family.  I'm a do it yourself and joining a syndication as a passive investor didn't appeal to me.

How I Found It: I found this property on Zillow, but not on the MLS. It had a contract on it, but I hounded the broker to take my backup if anything fell through. The initial deal did fall through because of lack of funding.

The Property: 20 door unit with two 2-story buildings.  All units are identical 2/2  Built in mid 90's; Brick Exterior

The Bad: Lots of delayed maint, 20yo HVAC units (except a couple that have been replaced.

The Good: Rents are far below typical for the area and have not been raised in years.  Most leases are month to month.

Financing: Smaller bank I have a relationship with.  20% down, 7y fixed with 20y AM at 4.25%.  No pre-payment.  Easy loan based on previous relationship.

Plan: We will immediately raise rents a little, but not all the way to market rate.  Hopefully a hand full will move out, but not all.  As tenants move out, we will reno (new paint, LVT, Countertops, and appliances) and bring rents to market rate.

I will post pics next week and keep updates as I go along.  Bigger pockets community has been incredibly helpful over the years and it's nice to share my own journey.