Apartment Syndiction in CA

[Mitch Pomeroy]

Investment Info:

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

Purchase price: $519,000
Cash invested: $200,000
Sale price: $1,200,000

We purchase under market rent, mismanaged, deferred maintenance buildings. We renovate them, release at market rents and sell or refinance for long passive income and long term wealth.

Video Link
https://www.dropbox.com/sh/ax5ywvhor971sek/AAA7YVuJxV-OK_C8Ly1TYEY5a?dl=0

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

Partnering with great people
I like value add properties. I flipped over 500 houses, then switched to multi family apartments.
The reason I switched:
Tenants pay debt service.
You can move half te residents out to renovate and the other half are still paying rent.
Depreciation / Tax Benefits!!!!
Passive income
Long term wealth
I can create syndication

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

A broker i have purchased from in the past found it on Loopnet. The property was

How did you finance this deal?

Bridge financing

How did you add value to the deal?

We completed the renovations in 8 weeks. The complex was 50% vacant. We released at market rents and increased the remaining tenant rents to market rate.

What was the outcome?

We 1031 exchanged a $400,000 profit into 5 properties. 4 of those properties are long term hold. The fifth will be resold for another $400,000 profit. We will exchange into 4-5 more properties and repeat the same process.

Lessons learned? Challenges?

It's better to pay bad residents to leave early and avoid longer evictions.