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.

[Curtis Rouse Jr]

Congrats on the deal @Thomas Willingham! I don't know how many times I've seen and encountered back up offers being accepted because the initial deal feel through. I was working on syndicating a 100 unit deal a few years back in Gasden, Al that feel through do to financing. You just never know these days especially when good deals are hard to come by the key is in the follow up. Best of Luck and if you guys are ever looking in the Atlanta market for MFR feel free to message me.