University Hill Apartments, Minot, ND

[Clint Larson]

Investment Info:

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

Purchase price: $112,900

This is a distressed mom&pop 6-plex. I am performing light renovation, rebranding, and implementing new management, and will refinance to roll the original cash into another deal.

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

I like this deal because the rents are already on the low end for the market. Rent could stay as-is and cash flow, or can be raised to market rates. The property has many value-add plays and many people in the local market perceive commercial deals as "off-limits" so competition for small commercial multi-family is slim. More importantly, we can help make the community better by fixing it up and providing valuable, affordable housing.

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

I have been watching this deal on the MLS. When it got near my target price, I submitted an offer and secured the property for slightly less than my target price. Negotiation was minimal - the owners were quite motivated.

How did you add value to the deal?

The method will be:
-Implement professional management
-Rebrand the property
-Raise rents to market rates
-Use existing unused space for rentable storage space
-Make the tenants feel that we care about them and keep 'em coming back for more.

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

Rachel Gaddie, Minot, ND realtor is a go-getter. If you're also a go-getter, you WILL make a deal happen.
Town and Country Credit Union, also of Minot, has been the absolute best community bank to work with for any loan.