Chester 12 Unit Package

[Dan Powers]

Investment Info:

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

Purchase price: $550,000
Cash invested: $120,000

Chester package of 6 different addresses for a total of 12 units. Consists of 4 duplexes, 1 triplex, and a 3 bed 1 bath twin. The total current rent is just over $8,000/mo, with the potential to push that to 11k+ once all units are paying market rent. Most of the units just needed a cosmetic update to bring them back to life.

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

What made my investor interested in this deal was the condition of the units and the cash flow potential. With most of the units being occupied, they were in decent shape already and only needed cosmetics (kitchen, bath, paint, carpets). Next, the cash flow, as it was already bringing in 8k as it sat, the rent in this pocket with this many units could top 11k.

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

This deal was sourced through New Western Acquisitions and was sold as a 48 hr highest + best. The starting bid was at 495k and I instructed my buyer to place a bid at 550k because that is what I knew it would take for him to win given there were many other bids for this package.

How did you finance this deal?

This deal was financed through a private lender contact I provided.

How did you add value to the deal?

Value in each house is being added by redoing the cosmetics in each property. Kitchen, bath, paint, carpet.

What was the outcome?

While this project will take a while to turn around all the units, the outcome is going to be a fantastic cash-flowing property.

Lessons learned? Challenges?

The only challenge was waiting for title to clear on all the properties, other than that it was smooth sailing.

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

Dan Powers - New Western Acquisitions