Multiple Building Purchase

[Account Closed]

Investment Info:

Small multi-family (3 units) and a large multi-family (6 units) buy & hold investment.

Purchase price: $200,000
Cash invested: $7,000

Duplex building converted to triplex. Fully occupied.
6 unit apartment building with storefront and coin laundry. Fully occupied.

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

I'm interested in any cash flowing deal, but I like multi-families.

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

This was an off-market deal that was offered to me by my appliance supplier. I was buying some more appliances, and he offered me the deal. A triplex and 6 unit commercial building for $200k. I had to cover closing costs.

How did you finance this deal?

A local bank was able to get me financing with a commercial loan. I used a paid off single family property to make the down payment.

How did you add value to the deal?

So far, rent has been increased by 12%. The buildings need no work. Not much opportunity for adding value.

What was the outcome?

Still new. No realized outcome at this time.

Lessons learned? Challenges?

Realtors make things easier, but more expensive. It may be worth it to use a realtor.
I wish I would have inquired about the insurance earlier. All delays were due to insurance.

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

No realtors on this deal, but if you are in the northern mid-west, IncredibleBank is pretty incredible.