16 unit downtown lewiston

[Steve Arel]

Investment Info:

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

Purchase price: $200,000
Cash invested: $24,000

16 unit good bones building bought at an amazing price as an off market deal since it had many downsides but the downsides are just temporary. I describe this one as the beauty is in the balance sheet

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

Large unit count and lots of value add opportunity

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

Off market deal fell into my lap and negotiated a cash offer using a line of credit

How did you finance this deal?

Heloc

How did you add value to the deal?

Evicted 7 out of 16 units to get rid of the trouble tenants. Rehabbing units, new porches with a grant program in the works and eventually updating siding as well

What was the outcome?

A year in and lots of progress made but still a long way to go. Lots of equity built into this deal just on day 1 and getting better as time goes on

Lessons learned? Challenges?

Things always take a little longer than expected.

[Steve Arel]

Quote from @Zachary Chart:

Is this on one of the "tree streets" in Lewiston? I have always been weary about investing in this area even though on paper it sounds like there is a lot of cashflow to be gained! section 8? Good luck with this project keep us updated on progress please

Its not the tree streets, but close to those areas. I own another 10 unit down the street though and the area isn't too bad really. I have a mix of section 8 and regular cash tenants. Cashflow is super solid because it was so cheap at only 12,500 per unit.