7 Unit Multi Family investment

[Brandon Nichols]

Investment Info:

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

Purchase price: $185,000
Cash invested: $40,000

Partnered with my wife and another family memeber to do our first deal on a 7 unit rental property. worked on rehabbing it while raising rents and putting profits back into building for the last 2 years. just about have the building where we want it to start seeing some return on our investment.

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

It was my first deal and i wanted something large enough to make it worth the investment of my time. I was busy working another job but wanted a back up plan in case things didn't workout there.

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

I found this deal on Zillow. The owner had other offers that had fallen through so negotiations were pretty easy, he already had the building priced very well.

How did you finance this deal?

commercial loan

How did you add value to the deal?

We have rehabbed the interior of all 7 units with new flooring, paint, some plumbing fixtures, counter tops, and light fixtures. our last major project is to replace a 2 story deck on the back side of the building this coming spring.

What was the outcome?

Well we are still right in the middle of it all but the property cash flows $4,500 before expenses, we plan to start taking a draw of about $2000 per month after our deck project is complete. we have been able to pay for all the updates thus far with the business money so after our down payment we haven't put any of our own money into the deal.

Lessons learned? Challenges?

The biggest challenge to this was missing time with family on the weekends in order to read the property ourselves.

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

In the ionia area i would recommend Lisa Coe with 5 star Real Estate, She is amazing.