28 Unit Student Rental BRRRR @ University of Cincinnati

[Joseph Cornwell]

Investment Info:

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

Purchase price: $1,650,000
Cash invested: $440,000

28 Units, 1 and 2 beds near the University of Cincinnati. We will be converting to student rentals.
PP: 1,650,000.00 @7% cap
ARV: 2,500,000.00+

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

I have been trying to get into midsized multifamily 20+ units for several years. I also recently moved in student rentals, so this combined both of those!

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

Listing broker sent it to me, we originally went into contract at 1.85MM but we found some cap ex items such as roof, plumbing, that needed repairs and negotiated a 200k reduction. With rates jumping up 2% I had much less competition at the time.

How did you finance this deal?

Commercial Bank 80% LTV on total project costs, 2.2MM with rehab funding.

How did you add value to the deal?

We will be renovating most of the interiors and doing cap ex repairs, raising rents to market and marketing to students.

What was the outcome?

Just started but we have an as complete appraisal of 2.5MM.

Lessons learned? Challenges?

Keep going until you get what you want, stay consistent and persistent. I am so glad I never gave up, and hopefully this will lead me to scaling up faster with more deals.