Buy and hold multifamily apartment

[Chris Schmidt]

Investment Info:

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

Purchase price: $215,000
Cash invested: $150,000

8 unit apartment building

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

Value add potential due to below market rents, high vacancy, and deferred maintenance.

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

One of our agents brought us this deal from the MLS, and we went into contract, completed due diligence, and agreed on a price.

How did you finance this deal?

Partnership + Private Money

How did you add value to the deal?

Top to bottom renovation

What was the outcome?

Leased up quickly, and stays occupied at near market rents. Physical and economic occupancy near 100%

Lessons learned? Challenges?

My initial rehab timeline wasn't realistic.

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

Kristi Schmidt with clayproperty.com