First Commercial Multifamily purchase- 9 units

[Thomas McTier]

Investment Info:

Large multi-family (5+ units) commercial investment investment in Akron.

Purchase price: $325,000
Cash invested: $84,000

Contributors:
Greg Beris, Edwin Glaude, Michael Magno, Nick Tarlton

9 unit apartment building consisting of four 1 bedroom 1 bath and four 2 bedroom 1 bath and 1 studio. Value add opportunity as some units will need to be lightly updated (carpet, paint and appliances) Rents are under market and will have the ability to increase rents right away, which will further increase monthly cashflow.

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

My business partner and I looked at investment opportunities from duplexes to triplexes on up and came to the conclusion that in order to scale the business 5+ units was the way to go. In addition when looking at some of the smaller size deals good financial record keeping was hard to come by from sellers which further helped our decision to focus on 5+ units.

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

The deal was found with the help of our agent Michael Magno, who did a great job negotiating with the sellers agent who could be difficult at times.

How did you finance this deal?

The deal was financed with a non-bank lender that focuses on multifamily properties. The lender was Edwin Glaude with Bavex Lending.

How did you add value to the deal?

We will be adding value to this deal by making improvements to the units as tenants move out and increasing rents to drive value of the property.

Lessons learned? Challenges?

Continue to stick to your principles and your target numbers which will help guide you in making the right decision.

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

Yes, i would recommend Michael Magno as a real estate agent - https://themagnogroup.com and Edwin Glaude as a lender -https://www.bavexlending.com. No hesitation about working with them again in the future.