Our first commercial apartments

[Troy Huczel]

Investment Info:

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

Purchase price: $1,195,000

Commercial multi-unit apartments of 10 units. 2 buildings with 2 units, 1 building with 4 units, and 1 little house

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

We wanted to grow our portfolio size and cashflow. We were looking to to maxamize our 1031 Exchange possibility.

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

Our agent looked for properties that were around $1M since we would have about $280,000 to bring as the down payment from the sale of the other properties. We were doing a 1031 Exchange

How did you finance this deal?

Did a 1031 Exchange of $280,000 as the down payment and financed $896,250. We used $38,000 from the Home Equity Line of Credit from my brothers primary residence to cover closing costs and help with down payment.

How did you add value to the deal?

Capitol improvements during tenant turnover.

What was the outcome?

Rents have continued to increase and in turn the property's value has increased

Lessons learned? Challenges?

It pays to have a professional property management company to deal with the headaches.

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

Monica Klus- agent
Arizona Investments and Management- property manager