Boise proving to be better investment market than Seattle

[Bryan Vukelich]

Investment Info:

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

My brother and I purchased this property via a 1031. Wanted to escape the new regulations Seattle was implementing on landlords and we thought Boise would be better environment. Thus far we have been right and have been able to increase rents by over 20% since acquiring.

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

Previous owners was a small group of people which included the builder of the property. They had not raised rents recently and there was a disagreement between owners on how to manage the property.

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

Found it through a contact we have in Boise.

How did you finance this deal?

Bank financing - 5 yr fixed.

[Bryan Vukelich]

Hi Daniel, my brother and I are looking for more deals in Boise (as well as other parts of Idaho) but we are pretty risk averse right now and I believe it one is patient, there will be better opportunities than now.  For the current property we have there, average rent was around $770 when we acquired it with a cap rate near 5%.  We've since been able to increase rents by nearly 40%.  And appealing thing of the property was it's turnkey condition, so we just did a few landscaping and common area improvements.  Overall we have been pleased with the management company - they've especially proven their value during this virus.  

How is your local market doing at this time? Are you seeing any interesting opportunities at this time?  

Does this answer all of your questions?  Happy to answer any other questions you have.