How We Bought a 24-Unit Apartment Building for (Almost) No Money Down: A BiggerPockets QuickTip Book by Brandon Turner

Author:Brandon Turner [Turner, Brandon]
Language: eng
Format: epub
Publisher: BiggerPockets Publishing, LLC
Published: 2015-02-03T18:30:00+00:00

Now the Fun Begins

I'd like to say the hard part was over, but honestly: it was just beginning. Now came the repairs and the management, of which the mistakes were MANY. However, I don't regret anything about this time.

Sure, I spent the next two years doing all my own maintenance, repairs, and rehabs.

Yes, I spent dozens of late evenings and weekends putting the finishing touches on units.

Of course, there were cost overruns, tenant drama, and more than one overflowing toilet.

However, within 2 years the property was stable. All 24 units were rented out to great tenants (I've never done an eviction on any tenant there!), and the property looked great. I was finally able to step back and see the forest apart from the trees -- and it was awesome.

Today (five years after purchasing this property) we still own it and manage it ourselves. We've hired a part-time office manager to answer phone calls, show units, and sign leases. I no longer do any of the maintenance over there and only drive by twice a month to check on things. And I'm currently in the process of refinancing the property into a lower-interest rate loan to improve my cash flow a bit more.

Today, at a 9% cap rate, the property is worth just a little bit over $1,000,000, and I owe about $525,000 on the mortgage and $60,000 on my father's line of credit, meaning I have built a bit less than $400,000 of equity in the property (50% of which is my father's someday) in the past few years and learned a TON in the process.

All with (pretty much) no money down.

Buying a twenty-four unit apartment complex at twenty-five years old was definitely one of the highlights of my life and something I'll always be proud of.

As I said in the introduction to this post: you will never do a deal exactly like this. This is NOT a recipe book. Every deal is different. But THIS is creative finance. This is no money down. It's tough, it's messy, and it's stressful.

But it's worth it.

Want More?

If you enjoyed this post, I want to invite you to pick up a copy of my full-length book “Investing in Real Estate with No (and Low) Money Down.” As you read in this book, creative finance is never as simple as learning “one strategy.” To get this apartment complex, I utilized four different strategies. This is why I put all the creative strategies I’ve ever used into one epic book.

In The Book on Investing in Real Estate with No (and Low) Money Down, I take readers past the hype and dive into real life strategies that investors across the world are using to invest in real estate using creativity - instead of their own cash.

Download

Copyright Disclaimer:
This site does not store any files on its server. We only index and link to content provided by other sites. Please contact the content providers to delete copyright contents if any and email us, we'll remove relevant links or contents immediately.