12 Unit Whole Sale Deal in Binghamton, NY

[John Bonhomme]

Investment Info:

Large multi-family (5+ units) wholesale investment in Binghamton.

Purchase price: $144,200
Cash invested: $159,200

12 Unit Whole Sale/Value Add in Binhamton, NY
C - Class Neighborhood Low Income
Property Manager on Board
10/12 units filled, 1 tenant being evicted (Other tenant complaints)
Will need 15k which was included in the Cash Invested Price to Fix

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

Price per unit in Binghamton runs about 18.5k (Low end) per unit. I got this one for about 13.3k

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

A wholesaler that I've done business with before called me up and asked if I was interested. I keep noticing that when you close a deal with someone they tend to have a different level of respect for you. They want to continue to do business.

How did you finance this deal?

I used the BRRRR strategy. I had another 6 Unit that I pulled money from and used the cash to purchase this 12 unit.

How did you add value to the deal?

Cash flow. This is a buy and hold. way about the 1% gross rule. Looking to 1% Net on this at full capacity. (I hope and pray, fingers crossed)

What was the outcome?

So far running smoothly. Hopefully God continues to bless the property.

Lessons learned? Challenges?

Don't be scared to lock something into contract. I locked this one in before I had financing lined up. I just knew it was a steal of a deal and had the Down Payment for it. So I decided to lock it in with the DP then get financing. First time doing that. It was a little scary and I was under pressure toward the end. But the deal closed. That's all that matters in the end.