Updated over 6 years ago on . Most recent reply
42 Unit Birmingham Multifamily Purchase
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.
Most Popular Reply
Awesome! Congrats @Caleb Bryant. And glad to hear @Sha Harris.
I'm currently visiting Birmingham and exploring the area and meeting some great people all over Alabama!