first deal mixed portfolio

[Matt Himes]

Investment Info:

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

Purchase price: $350,000
Cash invested: $350,000

nice turnkey single parcel portfolio. 5 unit building, one 2 bedroom sfh and a barn with 2 storage units inside.

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

analyzed a bunch of deals, considered the time i had to invest and the projects already on my plate. this seemed like an ideal property for cash flow as well as further development of the 9.5 acre lot. i plan to build 3, fourplexes on this property.

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

found deal on craigslist. negotiated directly with seller. cash offer and closing in 45 days or after inspection and deed search.

How did you finance this deal?

no financing

How did you add value to the deal?

plan to build more buildings on site with up to 12 more units. increased rents in 2 of the 6 units so far. other 4 are 10% below market rent

What was the outcome?

still own, numbers have been good. will continue to cash flow $2200 per month and develop further in 2021

Lessons learned? Challenges?

turn key brings in lower percentages. benefits are less unscheduled work. took little work and additional cash up front.

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

i had the contracts and due diligence done by Gieg realty services in Hollidaysburg, pa.