19 unit multifamily deal

[Nicholas Thompson]

Investment Info:

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

Purchase price: $566,500
Cash invested: $140,000

19 units in North Dakota. Current rents when we took over are about $75 lower than market. We have so far in a weeks time since the acquisition, leased 2 units for over are $75 rent increase projection and have a waiting list.

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

The opportunity to force appreciation through raising rents

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

My partner and i drove by the property made a cold call but it took 8 months to convince the owner to sell the building.

How did you finance this deal?

75% bank
25% cash (70% investor funds, 30% ours)

How did you add value to the deal?

adding value by raising the rents and placing higher quality tenants.

What was the outcome?

we will continue to raise rents over the next 8-12 months and refinance in 18 months.

Lessons learned? Challenges?

deal went very smooth