104 unit closed in Birmingham

[Caleb Bryant]

Investment Info:

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

Purchase price: $3,355,000
Cash invested: $240,000

104 unit purchased in West End, Birmingham, AL. 93% occupied upon purchase, lot's of Capex done by previous owner. Mostly a momentum play picked up at a discount, but operational upside and some rent growth available to capitalize on as well.

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

The fact that it already made money. 93% occupied on acquisition, so not many units to immediately turn and plenty of operational upside.

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

Found off-market through a broker relationship. We convinced the owner to sell us this property and another out of his portfolio at a discount, while he went on to put several other properties on the market at retail value.

How did you finance this deal?

Private money to close front end, will refinance within 6 months into a longer term product

How did you add value to the deal?

Operating the property more effectively by sharing resources and personnel from other nearby properties we own. Rent bumps, light turns (Vinyl floors, counter tops, paint, tile in bathrooms), RUBS

What was the outcome?

Just acquired in November so it is an on going process. Happy with the rent collection so far.

Lessons learned? Challenges?

This was a simple transaction with the exception of a few things that can't be accounted for, like our lender having to evacuate their building due to a wildfire causing the financing to be late.