First multi-family purchase

[Scott Titus]

Investment Info:

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

Purchase price: $151,000
Cash invested: $215,000

This is a 16-unit multi-family complex that consists of 4 buildings with 4 apartments in each building, all one level.

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

We owned 2 SFR's and several duplexes, I was ready for the next step.

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

I found this property driving for dollars and sent the owner a letter, 3 month later I sent them a follow-up, another 3 months later I sent another. Finally the owner responded to me and we started to negotiate the transaction. Several months later we closed on the 16-unit complex and we began rehab immediately. We just finished up the rehab and have been fortunate enough to rent all of the units out as soon as each became available. This deal also led to us going under contract on three other multi-family complexes with the seller.

How did you finance this deal?

Commercial financing and some self-funding of rehab.

How did you add value to the deal?

Remodeled 12 of the 16 units and raised rents in 12 of the 16 units. Once the remaining tenants move out, we will eventually remodel them as well and raise the rents on those as well.