First Investment - Out of State - 5 Unit Multifamily

[Florence Sullivan]

Investment Info:

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

Purchase price: $50,000
Cash invested: $50,000

5 Units, 1 br/1ba Fully rented, fixer. I have spent about $10,000 in the last 4 years and still need to do some things but not needed immediately.

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

It was the 1st deal I did and got it for a deal.

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

My brother already invest in Dayton and thought it was a good location to start. He did most of the negotiation but we leveraged the output of the inspection report to negotiate.

How did you add value to the deal?

Since purchase, we have made some structural fixes in the basement, outside structure, and parking area.

Lessons learned? Challenges?

I didn't realize how much money I would have to put away to renovate and, when tenants turnover, the cost to renovate the units. Also, I didn't ask about the roof, electrical, etc. I know better now.