6 Family + 2 Garages

[Todor Ialamov]

Investment Info:

Large multi-family (5+ units) buy & hold investment in Lawrence.

Purchase price: $785,000
Cash invested: $193,750

6 Family with 3 Bedrooms each, two garages and nice parking lot. Property was managed by a slumlord for a long time. Needed to get rid of all tenants but one, update the units and bring rents to market value.

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

Was a good price with plenty of value add.

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

Off market deal that was brought to me by an agent who I made on a RE event. The power of networking!

How did you finance this deal?

Commercial loan through JDCU

How did you add value to the deal?

We updated 5 out of 6 units and raise rent by an average of $450 per apartment. Rented the garages separately for an additional income of $400 a month.

Lessons learned? Challenges?

The seller was acting really unprofessionally throughout the whole transaction. On a couple of occasions I got really fed up and almost backed up. Lesson learned was to always keep cool and look for the bigger picture. It is a great asset right now.

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

I was representing myself in the transaction