What I've learned through this million dollar portfolio deal

[Harrison Chow]

Investment Info:

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

Purchase price: $1,029,000
Cash invested: $300,000

It is a packaged deal of 7 duplexes. Turnkey and 100% tenant occupied. The reasons we pulled the trigger
1. All units were in decent shape and it cash-flowed well on day one AND all of them were under rented.
2. Getting 7 duplexes allowed us to negotiate a better price.

Something I learned in this deal:
1. You can take down bigger deals when you have business partners and it's more fun!
2. Don't be afraid to negotiate. Negotiate hard until the other party says "no, this is my bottom line."

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

Cashflow, turnkey, 100% tenant occupied - typically it means rents are under market. 

We got a discount when we bought it as a package. 

Plus we know that these properties are set to increase in value due to their location.

How did you finance this deal?

Conventional

How did you add value to the deal?

Haven't done much to add value to the properties besides normal maintenance

What was the outcome?

Great cash flow with a lot of room to increase rent. We are probably still $300-400/mo/unit under rented.