1031 exchange executed!

[Jonathan Klemm]

Investment Info:

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

Purchase price: $1,435,000
Cash invested: $287,000

Contributors:
John Warren

Great cash flowing 19 unit building in west Chicago suburb. The building was not being operated to the best standards and 16/19 and we will be renovated over the next 2 years. Also adding laundry and storage & Bike room. Tenants already appreciate better management and we take pride in providing a safe, clean, & friendly place to live and have a family.

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

We want to continue to buy 5-30 unit properties that need heavy rehab and then hold on to them as longer-term rentals.

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

Referral from Friend/agent.

How did you finance this deal?

Commerical bank financing 20% down

Lessons learned? Challenges?

Closing in different states as partners can be tricky. Have handover system in place for property management.