10 unit outside of Pittsburgh

[Duc Ong]

Investment Info:

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

Purchase price: $250,000
Cash invested: $40,000

Contributors:
Anthony Angotti

This 10 unit is located about 30 minutes outside of Pittsburgh.

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

The seller financing terms and the fact that it was off market.

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

My partner found the deal through relationships with an old coworker.

How did you finance this deal?

$50K seller financing, and 80% LTV on the remainder through a local bank.

How did you add value to the deal?

Turning the units and bringing them up to market rent.

What was the outcome?

We are almost done turning every unit and getting higher rents on almost all units.

Lessons learned? Challenges?

We are going through one eviction currently, and we should have started the process sooner on that tenant.

[Duc Ong]

No, the local bank loan LTV is based on the net amount, after seller financing, which is 80% of $200K. Standard Bank is the local bank we used. Yes, I would recommend them, since they can do 80% LTV.