My first purpose built apartment

[Chris Lohmeier]

Investment Info:

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

Purchase price: $462,000
Cash invested: $7,400

This 12 unit apartment more than doubled my number of units. It was a quick three day, offer, bidding war, acceptance process. I initially took out a large personal loan for the down payment, and have since paid that back with cash from an investor and a LOC from the other properties. My cash invested will increase shortly as I'll be renovating an unused gathering room into a studio apartment.

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

I've always wanted to make the move to apartments because of the efficiencies of having everything under one roof.

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

It came up on the MLS. I made a full price offer, the sellers agent said they had two offers at around the same level. I increased my offer by a few percent and they accepted.

How did you finance this deal?

Portfolio loan for 80% of the deal. The other 20% is coming from an investor, a LOC on the existing properties in the portfolio, as well as a small amount of cash out of pocket.

How did you add value to the deal?

I haven't yet, but I will be turning an unused common area into a studio apartment.

What was the outcome?

Still TBD but looking very good right now.