My second deal in Jonesboro, AR.

[Mason Henry]

Investment Info:

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

Purchase price: $225,000

A 6 unit 1 bedroom 1 bath property. I brought in a JV partner to bring the down payment and reno cost. $55k total for 19% of the deal with an 8% Preferred Return. We have Renovated 3 of the 6 units, and in this market, it's worth $325,000. Our all in is $280k with right at 1000 a month cash flow.

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

Multifamily is what I love to do! This is the largest unit purchase yet for me.

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

Hand typed direct mail. I walked the property, left and called within an hour with my offer. They accepted due to a high pain point in their life at that moment.

How did you finance this deal?

Local bank loan.

How did you add value to the deal?

Renovated and raised rents from $585 to $700 and have a waiting list.

What was the outcome?

The outcome was instant equity and a considerable amount of cash flow for my JV partner and I.

Lessons learned? Challenges?

One thing that happened which was both a challenge and a lesson was, we blew the reno budget out almost immediately. Luckily with 100% sweat equity, we came out of it ok. I do know how to do the reno necessary and had many of the tools already. Huge mistake on estimating what the jobs would cost to hire.

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

I am actually an agent myself, and this was an off market deal. The lender I have used on a few deals now is Heath Wilcox with First Community Bank in Jonesboro, AR. Super easy to work with!