First multi-family purchase under my belt

[Jon Tripp]

Investment Info:

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

Purchase price: $270,000
Cash invested: $54,000

I purchased six doors in March of 2022 - my first multi-family purchase. Tons of learning so far and many things to be learned. I have a good PM in place as I'm about 500 miles away from the property. My value play going in is with modernization and rent increases. Once I complete the updates and rents across all six doors, I should add $200/door to my income and increase my per door profit. This isn't a homerun property. I'll consider it a single...but as the first and hardest deal anyone will ever do, this may be the most important and single hit yet.

Happy to discuss any questions anyone has.

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

When I clicked on the link to learn more, I thought it was a stretch at the price for the tri-plex. The listing was horribly written so it was unclear to the casual observer. When I dug more, I learned it was two tri-plexes.

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

I'm a licensed Realtor in Virginia and DC...and have connections around the country in the business. Negotiating is my jam - and while I didn't get much concession on price, because of the market, but I did get more concessions on needed repairs.

How did you finance this deal?

I put 20% down and commercial financing on the remainder.

How did you add value to the deal?

This is an ongoing process, but the value play is improvements and updating to increase prices as much as $200-$250/door.

What was the outcome?

That story is still being written...I just closed on it.

Lessons learned? Challenges?

Figure out what's working and what's not and make notes of it. For me, the big eye opener was insuring the property. I had a few challenges but was able to overcome that with some locals who provided me answers/resources.

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

My agent was essentially working as a dual agent. Since I am in the business, I didn't have a problem with that - and negotiated a referral for me bringing the deal to him. I had a broker/lender that I'm happy with and will use for future deals.

[Jon Tripp]

@Lori Williams, thanks! @Stacey So, Appreciate it. This one is in SC...but depending on your goals, be it income or appreciation, there are tons of options out there. I'm also taking the multi-family BP bootcamp which is helpful with some of those initial questions you probably have. I found my lender through a local realtor. Happy to connect with you on their info. @Bobby Feinman, the property is in SC.