7 Unit Portfolio Purchase

[Cole Farrell]

Investment Info:

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

Purchase price: $669,800
Cash invested: $179,000

7 Unit Portfolio Purchase
Mix between SFR, duplex, twins

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

I wanted to expand my portfolio but do not yet have access to large multifamily. I'm looking for cashflow over anything else

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

Private off market deal, I knew the seller. No negotiation, was not feasible

How did you finance this deal?

I brought in a partner for the down money, I manage and rehab. We 50/50 split everything.

How did you add value to the deal?

I'm currently rehabbing each of the units one at a time. I should be able to pull out about $20K per unit once it is finished.

What was the outcome?

Still in the process! Inherited tenants are a nightmare mixed with covid ie evictions but Im making it work.

Lessons learned? Challenges?

Rehabs cost more than you think even though you hear that and try to plan
Inherited tenants are usually the worst
Do a more detailed inspection

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

I used an agent for this because at the time I was not licensed (started the deal a year before we closed) and did not have confidence I knew enough of the paperwork for a large transaction like this. @JustinBrown is the best agent in the Lehigh Valley.