Deals do exist on the MLS

[Gaston Prevette]

Investment Info:

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

Purchase price: $260,000
Cash invested: $35,000

We found These 2 quads on the MLS and in less than a year we are currently generating just shy of $4100/ month in gross rents and have a fully stablized property. With many of the big ticket capital items dealt with in our first year ( new roofs, new windows, etc) we can now focus on keeping our tenants happy and our units occupied while we move onto to our next bigger deals.

Buy Right, Manage Right and Finance Right # WheelBarrowProfits

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

2 all brick quads on seperate Parcels
Separately Metered
Tenants paid all utilities
Out of town landlord
Bad MGT in place
High Expenses
Under Market Rents
7 of the 8 units were occupied with long term tenants
2/1 - 700+ sq ft
Washer hook up available
Understanding the market dynamics ( doing our homework on what other simalar style units were bringing locally)

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

MLS with a Realtor
Out of town landlord wanted to close fast they had these listed along with another property separately and since we purchased 2 together and got there first we we able to negotiate a better price.

How did you add value to the deal?

New Roofs, Windows, Rehabbed/ rented up a vacant unit, raised rents and kept all existing tenants .
**worked with one tenant who had been there for 17 years and took him from $338/ month to $495**
Once the work had been done in his unit ( New energy efficient windows, new AC units, repaired/replaced his sub floor in bathroom/ part of kitchen, with new toilet, vanity,flooring) he shared with our crew he was now proud of where he lived and would have paid more years ago if this was done sooner.

What was the outcome?

$2900/ Month Gross rents when we took over 1.1.18 and $4100 gross Rents by August 2018
- Capital Heavy in first year but now both quads have new roofs ( 1 due to a hurricane) all new windows ( except one unit) , 2 units have been completely redone ( and upfits should last at least 2-3 turns) ,
- Opportunity to conintue increasing our NOI by decreasing expenses and increasing rents
We can focus on keeping our tenants happy and improving the property to differentiate us from the competition

Lessons learned? Challenges?

Work with crews that are FAST and be willing to spend more. TIme is money and with a project where you are investing heavily on the front end you want your vacant units available ASAP. Insure your goals/expecaations are understood by your property mgt. We had to part ways with our initial team 6 months in because our expectations and their services didn’t match up . We are now working with a group that understands our vision and wants to grow with us on our Multifamily adventure.

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

Yes Pam Hood with Allen Tate Realtors .
She was and is awesome.