BANGING 💥 6 Unit In Toledo

[Engelo Rumora]

Investment Info:

Multi-family (6 units) Buy & Hold investment. Great area with SFH selling between $120,000 - $150,000

Purchase price: $160,000 + $5,000 to wholesaler as a "Thank You"
Cash invested: $0 ($50,000 - $70,000 in rehab)
Sale price: $225,000 BPO and $350,000 ARV

6 unit property with 1 x 3 bed, 1 bath, 2 x 2 bed, 1 bath and 3 x 1 bed, 1 bath

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

It was an absolute no brainer and I don't remember the last time I bought a deal with such great numbers.

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

Wholesaler turned me on to it and his contract lapsed due to difficulty of working with the seller. He eventually gave me the sellers contact details and 6 months later, I was able to get it across the line.

How did you finance this deal?

Money partner. 3 year term, 6 points initiation fee and 11% monthly interest (No appraisal or other BS).

How did you add value to the deal?

Doing external renovations now and turning 2 vacant units. As tenants vacate, will turn all other units.

What was the outcome?

Conservative ARV is $350,000 and when interest rates decrease, it could be worth North of $400,000. Once rents are optimized, the combined monthly rent will be around $4,000. Yearly net cashflow after absolutely all costs and a margin of safety should be between $15,000 - $20,000.

Lessons learned? Challenges?

Persist patiently and professionally