Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Real Estate Deal Analysis & Advice
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated about 5 years ago,

User Stats

401
Posts
307
Votes
Caleb Bryant
  • Rental Property Investor
  • Huntsville, AL
307
Votes |
401
Posts

42 Unit Birmingham Multifamily Purchase

Caleb Bryant
  • Rental Property Investor
  • Huntsville, AL
Posted

Investment Info:

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

Purchase price: $1,100,000
Cash invested: $265,000

42 unit Class C multifamily property. Purchased at $1.1 million, valued at $1.55 million per appraisal. Will be refinanced ~75% LTV in 3 months and held for cashflow from there. Value add: Rents below market $75-100, Rubs will be added, professional management shared with other property in the area for efficiency.

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

This property was a good fit because we already own other properties in the area so we can use management/maintenance we already have making it efficient. It is a clean property that is already cash flowing but has room to improve. Lot's of Capex put in by the previous owner who was a mom and pop operation.

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

This property was found through broker relationship. We didn't have to negotiate very much because the owner was pretty reasonable at the front end. We did negotiate $100,000 off the asking price, and a small repair credit in addition to that.

How did you finance this deal?

This deal was financed with a private money lender we have a relationship with

How did you add value to the deal?

By acquiring it at an attractive price. The property was purchased for 1.1mm, however, it is appraised at 1.55mm. We will add Vinyl plank flooring, incorporate RUBS, and have $75-100 in rent bumps available over the next year as leases expire. Operational efficiencies are also key in improving the NOI at this property.

Loading replies...