Large multi family apartment building

[Ryan Davidson]

Investment Info:

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

Purchase price: $115,000
Cash invested: $40,000

7 unit building, 4 completely remodeled 2019/2020

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

Great value add and mis managed by previous landlord.

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

Was on the MLS, my broker sent it to me. Viewed the day after it was listed for 120k, offered 110K we were told they had multiple offers. We increased our offer to 115k and it was accepted.

How did you finance this deal?

Local bank loan, 20% down

How did you add value to the deal?

Remodeled the 2 vacant units, 3rd unit was a terrible hoarder after removing them we remodeled that unit, moved to the 4th and completely remodeled it. As tenants turn we will remodel the others 3

What was the outcome?

We were able to a cash out refi and capture most of our money, continues to cash flow and be a great investment.

Lessons learned? Challenges?

Hoarders can really destroy a property and buying 100+ year old buildings have a unique challenges.

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

The Real Estate Shoppe in Kentland, IN. has the best broker that I have ever worked with. Debby is amazing!