My latest acquisition

[Kyle Robertson]

Investment Info:

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

Purchase price: $3,000,000
Cash invested: $640,000

🏡 Property Shuffle! 🏠

✅ I sold a 16 plex
✅ Refinanced an 18 plex
✅ Bought a 60 plex
✅ Scored a cheap $200k LoC
✅ Total cash out of pocket: $40k

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

Buy and hold Multifamily is my jam!

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

Local MLS.
Purchase price: $2.8mm
Financing: FCU
- 20% down
- 3.59% (promotional rate)
- 5/25
- Appraisal and loan origination fee waived on promotion through the FCU
Financing: FCU
- 20% down
- 3.59% (promotional rate)
- 5/25
- Appraisal and loan origination fee waived on promotion through the FCU
Inspections: 15 business days
Closing: 60 days
Seller countered me at $3.185mm, and I countered back at $3.0mm. Seller accepted.

How did you add value to the deal?

Rents averaged $550/unit. We have raised them as units began turning over to $725.

What was the outcome?

Cash flowing like a mad man!

Lessons learned? Challenges?

1. Build a solid network of good lenders, and stay in touch with them (while being respectful of their time, of course).
2. Inspections inspections inspections
3. Be creative with funding CapEx needs
4. Underwrite the deal 100 times throughout the process when something new is found (unexpected repair, higher than expected insurance quote, etc)
5. When buying a deal, be thinking about how this one will help you buy the next one.

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

Yes. Craig Melton with ERA Doty, Jonesboro Arkansas. Look him up!