1st Value-add property

[Michael Davis]

Investment Info:

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

Purchase price: $705,425
Cash invested: $100,000

12 B-class unit value add rents were at 400-450 market rent is 675-700. Partnership deal 50/50 with an 8% preferred return.

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

The equity building during the reposition and also learning more about the 5+ multi-family investing

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

MLS; Called agent, didn't collect commission just took it off the sale price.

How did you finance this deal?

5/1 Arm

How did you add value to the deal?

Raising rents, repairing the distressed units as tenant turnover happens

What was the outcome?

It's going well, 1 out of 12 left the first quarter after rent increases. we got that unit rehabbed and have tenents already applied.

Lessons learned? Challenges?

Commerical is an entirely different animal than residential

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

I ran the deal myself as a licensed realtor.