Summit Ridge 4 plex in Oklahoma City

[Nicholas Utesch]

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $440,000
Cash invested: $440,000

New construction 4 plex in Oklahoma City--great freeway access and conveniently located--10 minutes to downtown, 10 minutes to Edmond, 10 minutes to Chisholm Creek. Two units are 2 bedroom, 2 bath 1 car garage and Two units are 2 bedroom, 2 bath, 1 car garage. Each unit is approx 925 sq. feet (approx 3,700 sq. feet total)

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

Great price--New construction quadplex in a good location for $440k. Minimal maintenance issues since it is new construction. Grat cash flow

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

Off market deal--purchased directly from developer that does not list his multi family properties for sale

How did you finance this deal?

Paid cash. Added a 75% line of credit to access equity if the need ever arises

What was the outcome?

All 4 units have stayed full since closing. Rents are increasing and the neighborhood supports current market rents at approx $1,200 per unit, raising the cash flow up to this property up to around $4,800 per month as old tenants leave and we raise the rents to the present market.

Lessons learned? Challenges?

The property was broken into one day after closing (wow! Not a pleasant phone call) and someone stole all of the appliances from all 4 units (they were vacant at closing). Added an alarm system to the property after that happened).

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

Mandy Hansen with MidFirst Private Bank is an excellent multifamily lender in the OKC area and she originated the 75% line of credit against the property.