12-unit Deal in Hixson, Tennessee

[Josh Garner]

Investment Info:

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

Purchase price: $770,000
Cash invested: $160,000

12 total units (4+8 in 2 separate buildings). Commercial loan through Brian Presson at Bancorp South. 20% down 20 year am. 3.75%. Value-add - first 2 months improving the paint/decking/driveway/gutters/drainage/etc. Seeking to improve rents from $600/month each to approx $800/month each.

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

Opportunity for value-add. Improve units + grounds and bring rents up to market.

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

Emailed my property management company every month (for 18 months) on the same day with the same message......"Hey guys, just a friendly reminder - if you know of anyone who's selling, bring it to me first....." The deal wasn't perfect, but after 1.5 years of the same message, they actually brought me a property.

How did you finance this deal?

Commercial loan with Brian Presson at Bancorp South. 20% down 20 year am 3.75%. 2nd deal that I've done with him (5-unit purchased in 2020) - great guy who gets it done!

How did you add value to the deal?

Tree removal, gutter installation, drainage improvement, exterior paint, decking improvements + stain, driveway improvement, etc

What was the outcome?

I'll let you know :)

Lessons learned? Challenges?

This deal is the result of good relationships formed and value added over the course of 2 years.

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

Jeremiah Reynolds - Berkshire Hathaway