Multi family turn-key. First partnership.

[Chris A.]

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Portsmouth.

Purchase price: $215,000
Cash invested: $36,000

This was my first partnership and turnkey quality property. It just needed appliances and a fence installed.

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

I like multifamilly, and the partners are people that I like working with.

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

Anthony found the deal and put it together. I liked the numbers and we went forward with it.

How did you finance this deal?

Anthony carried the loan, AJ and I came up with the down payment.

How did you add value to the deal?

It was all based on expected rents in the area. It was a little bit of a challenge since the property was newly renovated, and not many properties in the area had been renovated recently.

What was the outcome?

It took a little while to see the cashflow, but that was because my partners and I decided to build up reserves prior to taking any distributions. Even with a newly renovated property we wanted to have a cushion available for emergent repairs.

Lessons learned? Challenges?

There were some difficulties getting the seller to fix some discrepancies with workmanship on the rehab. Stick to your guns on the close out inspections, and make the seller do what they are responsible for. It worked out in the end but it was a challenge for sure.

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

Melanie McDaniel. I would highly recommend her or anyone else from the Think Real estate team (also: Taylor, Erica, and Claudio)
Dan Grub from BB&T, lender. Highly recommended.
Shaheen Law Firm, Entity/LLC establishment and closing agent, highly recommended.