First multi family building in Chattanooga

[Peter Nikic]

Investment Info:

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

Purchase price: $900,000
Cash invested: $270,000

This is the first, hopefully not last multi family purchase in Chattanooga, TN. This is a 9 family building recently renovated. Good shape, good returns.

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

These are the types of properties that I'm most familiar with. They're generally a little too big for a small/new investor and too small for the larger investor.

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

Online, loopnet I think.

How did you finance this deal?

Regional bank 70% LTV

How did you add value to the deal?

This property is in good shape, it's a buy and hold. Should have good consistent returns.

What was the outcome?

It took some time, but finally closed.

Lessons learned? Challenges?

Bank required what they called a "Global Debt Service Ratio" because of the price range of the property.

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

KW office in Chattanooga, well run office, good agents. Pinnacle bank was the lender, easy to communicate with. Overall very good even though the "Global Debt Service Ratio" was a little bit of a sticking point.