2014 Purchase, Buy & Hold

[Andy Crooks]

Investment Info:

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

Purchase price: $670,000
Cash invested: $134,000

6 Unit Town home on Madison's near west side, off McKee Rd.

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

It was adjacent to some other properties that we manage, so the efficiencies and economies of scale were attractive. Also we could offer amenities (pool, gym, etc) at a minimal cost to help justify an increase in rents.

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

MLS.

How did you finance this deal?

Conventional Loan with local institution.

How did you add value to the deal?

New Roof (when hailstorms work in your favor), new appliances, new carpet and paint in common entry ways. Landscaping done in 2018, and patio doors replacement planned in 2019. Kitchen remodels and replacing outdated linoleoum with LVT.

Lessons learned? Challenges?

This was my wife and my first purchase of an existing rental property. We probably could have negotiated more efficiently to reduce the purchase price based on some deferred maintenance.