18 units in Fresno, CA. This is a deal I plan to replicate soon.

[Clay Gradis]

Investment Info:

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

Purchase price: $1,000,000
Cash invested: $300,000

18 unit multi-family. Each unit is 2 bed 2 baths with a garage.

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

The purchase price was incredible. At purchase time we were 20% below appraisal. Rents were low at $620, we raised rents and will continue to raise rents until we get to market at about $850. Buildings need work but are in good shape overall.

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

We were in the process of buying another deal when our lender brought this to us. He said to finish our current purchase and then he would show us this deal :)

How did you finance this deal?

We borrowed our down payment from a Heloc, friends, and family and took out a mortgage from a local bank for 70%.

How did you add value to the deal?

Currently, we are raising rents, ultimately we plan to redo all bathrooms and kitchens as well as the outside of the units.

What was the outcome?

Property is moving along pretty smoothly.

Lessons learned? Challenges?

Management is key, I talked with one property manager extensively and then hired them to manage the property. I should have interviewed several. So far the manager I hired is working out and we are getting used to working together.