6 unit Apartment Building in Houston's Northside Neigborhood

[Jeff Groudan]

Investment Info:

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

We built this 6-unit apartment building from the ground up. We bought the lot, had an architect design the building and contracted for the construction.

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

We like to invest for both cash-flow and appreciation.

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

We looked for a value lot with enough square feet to build a multifamily in our desired neighborhood.

How did you finance this deal?

Commercial Loan

How did you add value to the deal?

We optimized the design for cash-flow and what we necessary in the particular neighborhood

What was the outcome?

We have close to 100% occupancy every year. Property has appreciated over $250K in 3yrs. Consistently cash-flows about $2000 per month.

Lessons learned? Challenges?

Our only challenge right now is maintaining cash-flow while managing increases in:
- Interest rates
- Property taxes
- Insurance rates