8 Unit Multifamily - Fully Occupied

[Zane Belden]

Investment Info:

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

Purchase price: $160,000
Cash invested: $30,000

Contributors:
Devin Haertling

8 Unit, all 1 bed, 1 bath, fully occupied.
Fully renovated 1 unit and consistently raising rents.

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

Good purchase price. Convenient management. Low risk/cap ex exposure. Cashflow.

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

Agent/Property Manager. Analyzed the investment with BP calculator and made offer that would allow the property to have solid cashflow at modest rents with plans to raise rents.

How did you finance this deal?

Conventional, 20 year mortgage.

How did you add value to the deal?

Cleaned the units and fully rehabbed the units. Also by being responsive to tenants needs and repair/maintenance issues.

What was the outcome?

So far good. Property is fully occupied and stabilized.

Lessons learned? Challenges?

We purchased it fully vacant so it took about 6 months to get it rolling, so patience. Also, the better tenants you get, the better other tenant you get.