MFR #4

So for MFR #4, we purchased a 14-unit complex.  This was was different from our previous 2 MFR's in that it was fully rented with a waiting list, needed no (or very few) repairs.  There is also no plan to refinance quickly and pull money out.  It's more of a traditional purchase.  The objective is also to cash flow out of the gate.

Here is the plan we wanted to implement:
-- Turn it over to a new PM (my younger brother who is getting into the business).
-- Do small repairs needed (not much)
-- Get rents moved up to market level (They are currently about 15-20% below market).
-- Get everyone on a lease (Currently they are all month to month).

And that's it.

There isn't a lot to post on this one as things have pretty much gone according to plan.  No big surprises have happened in the first ~6 months of ownership.  4 units are at market rent, and the 8 others are going up to about 5% below market as of March 1st (couldn't raise too much in the first year) and everything will be up at market levels by March 2019.  Also, on March 1st, everyone will be on a lease (no more month to month).  It has cash flowed out of the gate pretty much from the start.  The first couple of months were close due to initial repairs and updates.  So beyond not quite being to market rent with every unit, we completed our goals well within our timeframe.

The real lesson here is that a traditional purchase is much easier to handle than the BRRRR method.  No opportunity for infinite returns in the first ~5 years, but cash flow is king for us and it accomplishes that.  We did currently dip down to 12 units rented but have applications for the other 2 so I expect to be full again soon.  It's just part of the game.  You have to turn down folks when you're full and hope you can find them when you're not.  That's why it's so important to not require a fully rented place just to make money.