Second Deal, 8 Unit Multi Family w/ Commercial Space

[Cody DeLong]

Starting a new deal diary starting with getting this property under contract.  I've been sending out letters the last 6 months here and there to some highly targeted areas.  I use a local woman that writes them, signs, and ships them.  She also takes the calls and updates me via spreadsheet.  However Everyones asking price was way too high and they wouldn't negotiate.  I made a call to someone who answered one of my latest letters.  They were interested in selling everything they had, so I did some research with the addresses the owner gave me.  I found one I was really interested in and after talking with the owner via phone it just so happens that my property manager is his property manager.  

We agreed on $200k for the property without me even seeing it.  Reason being the current owner told me he is heading to jail for a couple years and we can do the deal via mail and his attorney or we can do a contract now with the stipulation of getting a mortgage and also my satisfactory walk through.  My walkthrough is on Tuesday with my/his property manager.

The building is as follows:

Four 3br/1BA Apartments

Three 2br/1BA Apartments

One 1br/1BA Apartments

One Commercial Space

9 Total Units

Currently only 3 apartments are filled as the state program that is placing tenants had some issues with the current owner.  The change in ownership will push them to start placing tenants again. If they do not for some absurd reason (legit waiting lists for apartments in this area), we will be requesting to be removed from the program as they are not fulfilling their obligation if we're fulfilling ours (offering clean and safe housing).  I'll be posting a lot of pictures Tuesday after I see the place and confirm we're going to move forward.  I'm pretty positive I am, my property manager knows my expectations and told me it needs about $5-10k in work to get it all the way to my standards.

I plan on possibly bringing in a funding partner for the down payment and closing costs.  I want to buy a couple buildings this year and don't want to use all my available cash. I'm willing to give up some equity since the numbers are so great on this deal.  I'll post those with the photos as well.

[Eric Hrlbock]

Good for Cody 

I cold call a lot of multifamilys.  I just purchased a 15 unit that way.  I started hand writing a bunch of multiple to do a mailer. I will you success and hope to hear why he is going to jail.