Value Add 10-unit Multifamily Deal

[David Klefeker]

Investment Info:

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

Purchase price: $900,000
Cash invested: $25,000

Contributors:
Rodrick Frazer

10 Unit single story multifamily deal.
Situated in the heart of a Class A neighborhood 4 blocks away from downtown St Pete and 3 blocks away from Tampa Bay.

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

The rents were below market. The property also needed a bit of work to update the exterior and interiors which was a great value add opportunity for us. It was also situated in a class A neighborhood where there are not a lot of multifamily properties.

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

We found this deal through a local broker.

How did you finance this deal?

Private Equity

How did you add value to the deal?

We cleaned up the property, ext paint, landscaping, etc.
Also did light renovations to the interiors. At which point we were able to raise rates substantially and continue to run the property more efficiently through better systems and management.

What was the outcome?

A great cash flowing property.