38 Unit MF in Vegas- 18 month hold

[Melissa Johnson]

Investment Info:

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

Purchase price: $1,710,000
Cash invested: $710,000
Sale price: $2,415,000

Purchased this 38 unit multi family at a great price. The seller had an "in-house" property manager that handled everything the old school way....when we were in due diligence they literally sent me a box of paper leases to go through. We hired a killer PM to turn the place around and stabilize rents and sold it about 18 months later, enjoying moderate cash flow while we stabilized the building. We didn't want to stay in the Vegas market for too long.

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

We wanted to get our feet wet in the Vegas market. Held for about 18 months then sold.

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

I found this deal cruising Loopnet - used a local agent to submit the offer and negotiate.

How did you finance this deal?

Sunwest Bank, my investor had an existing relationship with them.

How did you add value to the deal?

Stabilized rents, made some repairs on some of the deferred maintenance, and hired killer PM to manage the property.

What was the outcome?

Pretty good ROI and moderate cash flow during stabilization.

Lessons learned? Challenges?

Investing out of state requires a team that you can trust. We initially had another property manager in place and they were fired within months. Have your team in place BEFORE investing!

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

Centurion Management in Las Vegas!