3-unit rental in Albany with 100% LTC private money financing

[Matt Whitermore]

Investment Info:

3 unit, attached multifamily in the City of Albany

Purchase price: $130,000
Cash invested: $0

Found the seller through a direct mail campaign, put it under contract and got the seller to allow us to lease 2 vacant units prior to closing. Purchased it with one business partner 50/50, and secured a private lender to fund 100% of purchase price and closing costs. Property is close to a 13% cap rate, inclusive of a 10% management fee.

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

I had recently moved to Albany and was looking for a deal near my other multifamily property in Albany, a short walk from this one. The cash flow is great and it should be easy to manage.

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

I sent the seller a postcard, he replied by phone and later sent details on the property with income, expenses, and his asking price. We set up a quick tour of the property, negotiated a bit, and bought the property for slightly below the asking price.

How did you finance this deal?

100% LTC private loan, currently in underwriting on our cash out refinance

How did you add value to the deal?

Leased the vacant units while under contract, prior to closing.

What was the outcome?

Will be cash out refinancing shortly to repay the private lender and find another deal!

Lessons learned? Challenges?

Be careful with sight unseen renters from out of town.

[Meghan Cheek]

Originally posted by @Matt Whitermore:

@Meghan Cheek thanks for your reply! We just did new carpets in one of the units and had a minor plumbing repair to take care of before renting the units so pretty minimal. It’s right near Lark and Elk. Maybe we can connect and show you something that works for you!

Nice!  I'm actually about to close on a property in Saratoga county, not so much a traditional rental as it's going to be our "forever" home but it has a rental unit attached.  I will definitely reach out in the future when I'm on the look again though!