Investment Info:
Large multi-family (5+ units) buy & hold investment in Fort Worth.
Purchase price: $3,650,000
Cash invested: $1,000,000
Purchased a 51 unit multi family property off market in Fort Worth Tx for 71K a unit. The property was inherited after their father has self managed for many years. The property was built in 1990 and very clean. The rehab was 400K and mostly cosmetic interiors. We achieved 300+ rent increases on the renovated units. Estimated currently value is over 6M with about 2M in equity created!
What made you interested in investing in this type of deal?
I am interested in every aspect of multi family investment because of the benefits. The economies of scale, tax benefits, loans, cap rate compression, and more! Great asset class.
How did you find this deal and how did you negotiate it?
This was an off market deal. Negotiations led by simply making an offer that was quickly accepted.
How did you finance this deal?
Local bank relationship. 80% LTC, 2 years IO with a 5 year term. No pre pay.
How did you add value to the deal?
1. Professional management
2. Renovated all units allowing $300+ rent increases
What was the outcome?
About 2M in equity created and a very nice property!
Lessons learned? Challenges?
Manning Multi Family properties this size (51 units) presents challenges because generally the budget doesn’t allow for a full time leasing manager on site. We we’re renovating several units at a time and we’re having trouble leasing the units quick enough in the beginning so we had to increase staffing until the renovation was complete.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
N/A
