Orlando Multi Family Value Add 5 Plex

[Derek McManus]

Investment Info:

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

Purchase price: $700,000
Cash invested: $108,000

Purchased a value add 5 unit property (3 separate buildings) A location with big Value Add potential. Seller financing note 70% LTV with 2 year balloon. Plan is renovate, re rent, refi and cash flow positive. NOI target is $65k.

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

Perfect start for trying larger commercial property. The location is A+ which will produce quality tenants.

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

Listed on market and had relationship with Agent.

How did you finance this deal?

Seller financing 70% LTV at 5% 20 year am. 2 year balloon

How did you add value to the deal?

Updated all units, 1 new roof, paint and landscape.

What was the outcome?

Still in process. Rehab almost complete on 3 of 5 units.

Lessons learned? Challenges?

Insurance was difficult due to age of home.