7 Unit Multi-Family Out-of-State

[Molly Edwards]

Investment Info:

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

Purchase price: $260,000
Cash invested: $65,000
Sale price: $320,000

7 unit apartment complex. Cash flowed $1,000 per month. Sold to 1031 closer to home.

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

Cash flow - I wanted something that would cash flow at least $1,000 per month. I accomplished this and then sold to reinvest closer to home.

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

I found it through a property manager that wanted to sell her own property.

How did you finance this deal?

Commercial loan, 25% down. Pulled equity from my personal residence for the down payment.

How did you add value to the deal?

Natural market appreciation

What was the outcome?

I doubled my initial investment in just over two years.

Lessons learned? Challenges?

It is hard to own property out-of-state but with a good property manager, it is very possible to do well.

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

No. I brokered the deal myself as I am a licensed agent and know the ins and outs of the paperwork and process.