12 unit off market value add multifamily

[Tony Stephan]

Investment Info:

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

Purchase price: $1,008,000
Cash invested: $200,000

12 unit off market value add multifamily real estate investment. Below market rents and outdated units. I received strong financing at a 5% interest rate/ 25 year AM with 6 months interest only so I could quickly turn the rent roll. Previous rents were $550-600/month. Currently renting at $950 + $50 RUBS. Will look to do 100% cash out refinance in 2024.

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

Great location near my other apartment deals and a value add opportunity. I only look to buy in great areas.

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

Called a broker I saw listed a different multifamily on the MLS and I built a relationship. He sold me this 12 unit and another 16 unit as. pocket listing.

How did you finance this deal?

80% LTV 5 year fixed rate at 5% with a 25 year AM from a local CU.

How did you add value to the deal?

Increased rent roll from $500 - $950/month.

What was the outcome?

Will cash out refinance in 2024. Significantly improved the NOI.

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

My wife is my broker and agent