Seven unit single family package

[Jordan Moorhead]

Investment Info:

Single-family residence buy & hold investment in Louisville.

Purchase price: $507,000
Cash invested: $97,000

Contributors:
John Dickinson

A partner and I bought a package of 7 single family homes in the same neighborhood. One or two are below market rents and 4 were not rented. Before closing our PM rented them all for market rents or higher. We still need to get one home's rent up and should have that done shortly although she's on section 8 so our PM is working on it.

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

Believe it or not this came to me! We're always looking to buy good rental houses!

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

PM brought to me and we were able to negotiate a favorable price

How did you finance this deal?

Commercial Financing through Republic Bank

How did you add value to the deal?

Leased out vacant houses

What was the outcome?

We closed on a good package!

Lessons learned? Challenges?

Be patient when dealing with multiple sellers

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

Republic Bank in Louisville did a great job

[Jennifer Donley]

@Jordan Moorhead congratulations!  

Thought I'd chime in on a couple things - rent increases usually aren't difficult with Section 8 but they may be time sensitive.  You may have to wait until close to the renewal (like we do here) or you may not, depending on how the locla PHA works.

Also, hopefully your PM is awesome.  I have found here that most PMs aren't very good at Section 8 but the program is great when executed on well.  I think it's difficult for PMs who don't do a ton of it and so don't have the processes built for it.

Congrats again and good luck!