Off market 32 unit portfolio on 8 acres for 1M

[Brandon Beatty]

Investment Info:

Large multi-family (5+ units) commercial investment investment in Ingleside.

Purchase price: $1,050,000
Cash invested: $350,000

I added this deal to my profile for experience and decided to post about it. I bought this deal off market very distressed. It required repairs after a hurricane in South Texas.

What made you interested in investing in this type of deal?

I owned single family rentals and one apartment complex prior to this deal

How did you find this deal and how did you negotiate it?

Marketing directly to sellers. Seller wanted 1.5M and ended up settling for 1M.

How did you finance this deal?

I used a local bank

How did you add value to the deal?

At purchase rents were $700 per unit. I spent total over 500K on the renovation (took 2 years nearly). Rents are now $1400.

What was the outcome?

Over 1.5M in created equity

Lessons learned? Challenges?

I did not do enough due diligence. I ended up spending about 150K more than anticipated on renovation. I also gave 30 day notice to many tenants months leading to COVID leading to low occupancy for several months.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Not specifically. I recommend meeting bankers, brokers, property managers in you market specifically on referrals from others already in the industry.