14 plex in Rogersville Tn

[Kelley Townsend]

Investment Info:

Large multi-family (5+ units) commercial investment investment.

Purchase price: $775,000
Cash invested: $155,000

14 plex with decent cash flow. Our first in Tennessee.

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

Initially the cap rate was lucrative and we placed an offer sight unseen.

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

Online, then with the help of a commercial broker. We were 2500 miles away and closed the deal on the last day of 2021!

How did you finance this deal?

Cash purchase, refi'd back out.

How did you add value to the deal?

Rent increases as evidenced by our refi appraisal. We will be fully increased by July 2022, adding value and cash flow.

What was the outcome?

It's been great. Learned some valuable lessons. Have not been damaged in any way.

Lessons learned? Challenges?

Need to visit premises often.
There are always hidden costs.
Prop management is higher in different parts of the country.

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

Yes.