I closed on an 8 unit apartment complex today

[Darrell Bratton]

Investment Info:

Multifamily 8 unit

Purchase price: $233,900

Cash invested: $0

Two triplexes and a duplex

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

I am growing my portfolio for retirement income.

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

I found this deal through a broker who knows that I am looking build a portfolio and is somewhat my mentor. My mentor told me the day it came on the market and told me to put in a full price offer. I did that and it appraised for 50K more than the sales price.

How did you finance this deal?

I used equity from two rentals (48k). I rolled in two single family rentals into this loan so the full loan is 10 doors.

How will you add value to the deal?

I will add value by stabilizing the 8 unit, which has many long term section 8 renters.

What was the outcome?

I am at 21 doors as I have another loan with the same community bank. I have 11 doors in the other loan.

Lessons learned? Challenges?

I have learned that I have to trust my team. I was discouraged from buying a 6 single family deal by my mentor and then this deal came up. I was in a hurry to deploy my equity money, but my team stopped me in time. My team is my broker, banker, property manager, and lawyer.

[Brian Garlington]

Incredible story sir. You will find that (properly screened) Section 8 tenants can be far more appreciative of having a good Landord than a lot of cash tenants.

Looks like your deal comes out to about $29K per door. I’m sure you also have a solid cap rate and that guaranteed section8 income is great for now and your retirement.