6 unit Apartment long term fix and flip

[Peter Needham]

Investment Info:

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

Purchase price: $130,000
Cash invested: $150,000
Sale price: $230,000

6 unit apartment complex in Akron OH

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

Great cashflow as well as a good flip opportunity once the units got remodeled.

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

I found it through a network of investors in Ohio. An investor got in over his head and just wanted out of it and was willing to sell it to me at a discounted price

How did you finance this deal?

Capital investor. He brought the cash and we split profits 50/50

How did you add value to the deal?

We immediately dumped about 20k into the outside of the building; windows, landscaping, lights and paint for the decks and stairs. Over the next year and a half we took half of the monthly cash flow and started doing repairs to each unit as the tenants moved out and bumped up the rents.

What was the outcome?

Sold the property after all units had been rehabbed and filled with great qualified tenants and sold it for $230k

Lessons learned? Challenges?

Being patient with the property and understanding that we could manipulate the value if we took our time and did the rehabs and work correctly at the right time.