Thirty one unit Class D asset repositioned to a Class C+.

[Chris Hale]

Investment Info:

Large multi-family (5+ units) commercial investment investment.

Purchase price: $1,200,000
Cash invested: $250,000
Sale price: $1,800,000

31 unit class D asset that I BRRRd. Purchased, Rehabbed, brought the occupancy rate all the way to about 60% during repositioning. Rehabbed exterior and all interior units. Added an office, brought the clientele up and asset to Class C+. Repositioned this property from dangerous with significant deferred maintenance to clean, safe, new everything. Added amenities like Community Area with BBQ pits and pergola and dog park. Sold at a nice profit.

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

I am a Lifestyles Unlimited Preferred member (multi-family). Received their LEAD CERTIFICATION CERTIFICATE entailing of several hours of education. Was offered this opportunity to purchase this asset and took it.

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

Found it through the realtor of the real estate group in which I'm a member. Since I was brand new to real estate, she did the negotiating.

How did you finance this deal?

I financed this deal through a small credit union in the town of the asset. I was an IRO (independent owner).

How did you add value to the deal?

Rehabbed exterior of the four buildings, all 31 unit interiors received new appliances, floors, counters, paint, etc. Added a couple of amenities including a dog park and a community gathering area with two BBQ pits and seating under a pergola for shade.

What was the outcome?

Turned this asset from a class D to a class C+. Created a clean, safe, functional place for people to live. Improved the community in which the asset sits.

Lessons learned? Challenges?

Learned how to lease, collect rent, do the books, work with the contractors and effectively deal with the tenants. It was a crash experiential course (2 years, 3 month) in real estate investing and property management. It was one of the scariest things I've ever done but it was so much fun. I loved it.

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

Absolutely. I loved my real estate agent, lender and GC. If anyone needs one of these in Houston, TX just let me know!