All Forum Posts by: Michael Davis

Investment Info:

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

Purchase price: $705,425
Cash invested: $100,000

12 B-class unit value add rents were at 400-450 market rent is 675-700. Partnership deal 50/50 with an 8% preferred return.

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

The equity building during the reposition and also learning more about the 5+ multi-family investing

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

MLS; Called agent, didn't collect commission just took it off the sale price.

How did you finance this deal?

5/1 Arm

How did you add value to the deal?

Raising rents, repairing the distressed units as tenant turnover happens

What was the outcome?

It's going well, 1 out of 12 left the first quarter after rent increases. we got that unit rehabbed and have tenents already applied.

Lessons learned? Challenges?

Commerical is an entirely different animal than residential

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I ran the deal myself as a licensed realtor.

Thanks for the feedback. I took your advice and looked into it more and you were right. I was running the numbers as it was a residential loan, I was not aware commercial was so much different (thanks for the advice on that). The neighborhood is what I would call B or B-. This property is located in the midwest about a 5-minute drive from the local college. 

Hello BP, I have a deal here I would like to discuss. This deal is very close to hitting my key numbers and would like to get some ideas on how to achieve this. I look forward to discussing this with everyone. I'm looking for at least $100 a month in cash flow and at least 8% CAC.  with this report below I have taken about $7000 off the asking price and raised rent form $825 to $900 (making both units renting at $450 a month.)  I am looking for different ideas to make this deal work and I am eager to discuss this with the BP community!

View report

*This link comes directly from our calculators, based on information input by the member who posted.

https://www.biggerpockets.com/forums/88/topics/558936-calc-review-help-me-analyze-this-deal-round-2

Just at a quick glance I see that you are not assuming that the value of the RE, expenses, or cash flow will go up at all over time, was this your plan or a typo?

Hello BP, what does everyone think of this deal. I have not yet seen the inside to calculate any repairs. Just came onto the market. Anyone with experience in apartment investing please let me know. I am willing to take a partner with financial backing in on this deal contingent on the inspection and a walkthrough of the property. 

View report

*This link comes directly from our calculators, based on information input by the member who posted.

https://www.biggerpockets.com/buy_and_hold_results...

see if this works, i know the location on the map is wrong but everything else looks good so far 

it doesn't look like the info from the CALC was saved, is this just on my end? can anyone else see the details?

Hello BP, what does everyone think of this deal. I have not yet seen the inside to calculate any repairs. Just came onto the market. Anyone with experience in apartment investing please let me know. I am willing to take a partner with financial backing in on this deal contingent on the inspection and a walkthrough of the property.  

This was a selling point for me too @DannyRogers!!!!   Thanks, @MichaelSato !!!!!!!!!!!