Buying a 96-unit deal at a huge discount

[Caleb Bryant]

Investment Info:

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

Purchase price: $2,800,000
Cash invested: $390,000

This is a 96 unit that we closed in January. We acquired this property for $2.8 million or $29,167 a door. There are several value add opportunities including utility bill back, low flow water systems, low rents, adding washer dryer hookups in certain units and better management/operations.

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

The opportunity was in the buy. Properties in this area trade closer to 50k per door and we were able to pick this one up for a hair over 29k a door.

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

Broker relationship aided us in finding this property. He let us know the owner may be willing to sell for $3.5 million, we extended an offer of $2.4 million and we settled at $2.8 million.

How did you finance this deal?

Private money loan

How did you add value to the deal?

Improving management, turning units quickly, implementing strong systems, low flow water systems, utility bill back

What was the outcome?

We are getting close to closing our refi on this property. We will be pulling out ~ $3.2 million after two months of ownership

[Caleb Bryant]

@Christa S Rickard you have to be more careful in Birmingham. In Huntsville if you buy right you’re going to be ok. In Birmingham if you buy on a tough street you might be stuck with a building that won’t make money because the manager will be too scared to collect rents. I love Birmingham, just make yourself as familiar as possible with the market first. This goes with any market though. Best of luck! If you’re in the Huntsville area let me know