Akron Apartment Building

[Amit Chawla]

Investment Info:

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

Purchase price: $407,000
Cash invested: $250,000

12 Unit apartment building. 10 1bd/1bath and 2 2bd/1bath.

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

Great value add component and high ARV

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

Through Crexi and used a great real estate agent

How did you finance this deal?

Bridge financing for 80% purchase price and construction loan.

How did you add value to the deal?

Fully renovating all 12 units as well as basement and exterior of the building.

What was the outcome?

Increase in cash flow by minimum of 2x from sellers income. Appraised value significantly higher resulting in 6-figure being added to net worth and positive cash flow.

Lessons learned? Challenges?

Have proper purchasing contracts in place for commercial real estate. Also make sure that any information is given in writing and notarized if needed. Seller kept deposits and seller's property manager stole rent money for the month of October. They never notified any tenants of the building sale or of their need to vacate the building.

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

Mark Colucci with Keller Williams Real Estate. Helped me negotiate with seller and find relevant team to renovate and manage the property.