Just closed on 8-plex

[Joseph Gibney]

Hi fellow investors - 

Closed this week on an 8 unit apartment in Knoxville, TN - actually 2 identical 4-plexes located adjacent to each other. Luckily the two buildings are on separate parcels, which allowed me to get conforming 30 year fixed rate loans. Looks to be a good deal - high quality, well maintained properties selling at or below what the average (read: not well maintained) 4-plexes in the area go for. Rent-to-price is a bit low at 1.1x right now; but it cash flows decently after capex reserves and there's some upside in rents of about $75/unit if I'm willing to risk some of the existing tenants. As a financial guy, I like IRR - and this deal comes out at around 11% over the long haul (fully loaded with capex, etc).

Shout out to BiggerPockets - it's amazing how useful this site is.  Although I'm not a big forum poster, I can find good answers to every single question I have when I look stuff up on the forums; and in-between deals, there's nothing better than listening to the Podcasts to learn and stay motivated.

At the beginning of the year, my wife and I set the ambitious goals of 1) selling our loss making Florida rental house, 2) selling some vacant land in Florida to raise cash, and 3) getting 10 doors in our new market of choice, Knoxville, TN.  Ten months later, all goals for the year have been met.  Looking forward to 4 more doors next year.

Thanks BiggerPockets!

Joe