All Forum Posts by: Jose Villalba

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $443,000
Cash invested: $60,000

I've included the mortgage, a 5% rental vacancy rate, and a 5% capex reserve.

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

I invested in this deal for value appreciation as the investment was a distressed property. The new property valuation is over ~37% higher than its original price. I also wanted to start learning about the deal-making and property management processes. I've also increased total rents by ~14%.

What was the outcome?

The new property valuation is over ~37% higher than its original price. Total rents increased by ~14% (weighted average). In addition, I'm more familiar with the buying, fixing, renting, and property management processes.

Lessons learned? Challenges?

Since this was my first experience, the process took longer than anticipated. It was difficult managing all the stakeholders (from closing the deal to fixing the property to renting it). The most difficult part for me was raising capital.

I'm looking to increase my network, knowledge, and experience in RE. I'm an MBA student learning about commercial real estate (acquisitions). I've already invested in a duplex in NJ (I'm renting it to two families and managing it) and a single family in MI (living in it). I want to learn how to grow my portfolio. I'm looking to learn to invest by doing (i.e., helping an investor(s) during the entire process). 

Let me know if you live in or near Ann Arbor, MI, so we can go for a coffee and chat about RE. If you don't live nearby, that's fine! I would still love to learn about you and your experiences in RE.