9 units in Orlando, FL

[Devin James]

Investment Info:

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

Purchase price: $1,110,000

This property includes 8 1bed/1bath units and 1 studio located a few blocks from downtown Orlando. Great location with plenty of local restaurants within walking distance.

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

The power of debt pay-down.

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

We found this deal on market and offered no financing contingency with quick closing.

How did you finance this deal?

Loan that required a 20% down payment. We raised capitol for the 20% down-payment.

How did you add value to the deal?

Property was well kept by previous owner, but the owner was not capitalizing on the investment to its potential.
We added about 100K worth of value which included:
- Exterior Cosmetic Work (Horizontal fencing, sign with building name, etc.)
- Interior renovation (Updated kitchens and flooring)

What was the outcome?

- Day 1, 16% rent increase
- Preferred return for our investors with a 50/50 profit split.
- Significant Cash-flow
- DEBT PAY-DOWN

Lessons learned? Challenges?

Challenges:
- Getting financing in 20 days after our first lender said they couldn't close in time.