5-Plex Near The Falls

[Eric Jackson]

Investment Info:

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

Purchase price: $285,000
Cash invested: $75,000

Seller accepted our offer of $285,000. This is a 5 unit property with the following attributes:

Unit 1: 3B1B - occupied - Current rent $675 > Increased to $750
Unit 2: 2B1B - occupied - Current rent $595 > Increased to $750
Unit 3: 2B1B - unoccupied - Rehab Estimate $5,000 > Potential rent $800
Unit 4: 2B1B - occupied - Current rent $425 > Increased to $700
Unit 5: 2B1B - unoccupied > Potential rent $800

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

Team up to get part of a great deal and a little extra monthly income for managing it ourselves.

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

MLS listing that was not showing up on Realtor and Zillow.

How did you finance this deal?

Commercial Loan with 20 year amortization and a
10 year balloon pmt.
4.62% interest rate.
5 year rate reset.
Monthly PMT: $1,373.81

How did you add value to the deal?

Raised rents closer to market rents.
Rehab 2 vacant units.

Lessons learned? Challenges?

Have multiple financing options open to you and don't be afraid to switch to another financial institution if yours is dragging its feet.