50 unit value add

[William Dorrough]

Investment Info:

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

Purchase price: $6,700,000
Cash invested: $1,500,000

this was a value-add deal of a 50-unit multifamily complex.

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

it was under managed. and had a good opportunity to add value and refi with the lending market as it was in 2020

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

this deal was an on market deal

How did you finance this deal?

we originally borrowed 75% ltc from a local bank

How did you add value to the deal?

we rebranded re marketed with minor cosmetic upgrades and we supplied in house new management

What was the outcome?

we eventually refied after only 9 months with a significant noi increase through fannie becoming cash on cash plus a sizeable non taxable event along with 5 years i/o at a very low rate which allows for a healthy cash flow