Investment Info:
Large multi-family (5+ units) buy & hold investment in New Port Richey.
Purchase price: $1,400,000
Cash invested: $400,000
River's Edge is a 21 unit property that sits on a waterway. It is situated on a quiet dead end street but within a block of a main thoroughfare and half a mile from Starbucks!
What made you interested in investing in this type of deal?
Had done a few single family rentals and was interested in flipping but after listening to Grant Cardone I felt strongly that multifamily was the way to go!
How did you find this deal and how did you negotiate it?
I found the deal on loopnet and contacted the broker via email. The asking price was fair and after reviewing the OM gave a full price offer.
How did you finance this deal?
Put down 25% and financed the remaining through a bank loan.
How did you add value to the deal?
The property is in great condition. We have updated a few units through turnovers but primarily added value through better management. We have been able to significantly increase rents and started charging for utilities and trash.
What was the outcome?
We have had the property for 7 months now and are planning on holding and refinancing down the road.
Lessons learned? Challenges?
I have learned so much through this first deal so I'll try to keep it short and simple!
1. Make sure to see what the property previously sold for so that you can calculate what your property taxes will increase to.
2. Don't just accept the first loan you are offered. We had a few that we looked over but I feel I should have pressured for better terms.
3. Know your stuff but be humble! You will be dealing with a lot of people who have done this a million times. Be willing to learn.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
We worked with Marcus and Millichap and they were absolutely fantastic!
