5 Unit Multifamily Bldg

[Nathan Adams]

Investment Info:

Large multi-family (5+ units) commercial investment investment in Great Falls.

Purchase price: $152,000
Cash invested: $38,500

5 Unit Multifamily building. Bought it with 2 vacant units that need renovating. Will be complete by Mid-Feb of 2019. Three units that are rented already cash flow the building.

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

Value add opportunity. Great neighborhood. Solid cash flow. Opportunity to BRRR.

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

MLS. Negotiated directly with selling agent.

How did you finance this deal?

Personal savings.

How did you add value to the deal?

Two of the five units had not been rented out and were gutted. Most people saw it as a problem, I was happy to rehab and be able to fix up the units the way I wanted them. Once I rent them, the building will cash flow fantastically.

What was the outcome?

Still rehabbing. So far so good.

Lessons learned? Challenges?

I learned that the wiring in the building was done incorrectly in the two units I'm renovating. The work around will most likely be that I need to rent the units with "Electricity Included", which I'm not a fan of. I'm still finding out the total cost to re-wire the building, but I don't think it will be cost effective.

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

I had a friend who's also an agent help me out. He definitely helped in the negotiation process. His name is Zach Gregoire. I also had a fantastic local lender named Tom Matthews at Opportunity bank that allowed me to work 1/2 the rehab into my loan.