My Worst Investment Ever | 11 Unit Apartment Complex

Chandler explains his worst investment ever in this 11 unit apartment complex.
In this video Chandler shows you how this 11 unit apartment complex is the worst rental property he’s ever purchased. He goes on to explain how he will make it one of the best!
Get $50 off my new Real Estate Investing Course! Use coupon ( 50OFF ) Go to:
www.chandlerdavidsmith.com/co...
To join my Facebook group, go to:
/ chandlersmithmastermind
To learn more about a job opportunity doing door to door sales with Chandler, go to:
www.elitesummersales.com/
If you're interested in learning more about real estate investing, and you'd like to have one-on-one mentorship go to:
www.chandlerdavidsmith.com/
Check out some other videos if you want to learn more about investing in real estate, building a huge passive income, or preparing for your own future home.
Want to see all of Chandler's real estate deals?
Real Estate Portfolio
• Real Estate Portfolio
What is a Good Deal?
• What is a Good Deal? |...
Follow Chandler
INSTAGRAM
/ chandlerdavidsmith
Facebook
/ chandler.smith.73

[@mikefeir]

Chandler: *barely says anything Chandler: “so with ALL of that being said…”

[@riotmakerzify]

Can you make a video about building relationships with local banks?

[@kennethporst4359]

Just bank with em couple years, building credit with them, getting loans, installing. Checks with them

[@bebin73]

Give them all your business and take a couple of the loan agents to lunch a few times.

[@sideshowamit]

300$ a month is pretty much free rent. Great video!

[@senorhook2872]

Previous owner was probably renting out to his in-laws 😂

[@oshitomaha]

I wonder what bum location this is at? Sheesh

[@maliliete7517]

No rush no reward! Love your mentality brother, you see the profits when buying not after the fact. Can’t wait to learn more and hopefully get multiple properties from your course.

[@johnmurraycompton569]

Appreciate the insight Chandler!

[@thepeopleschamp9076]

To make it a bit more clear, he's likely going to double everyone's rent. That alone is why I can't do what he does. See, when I think of tenants who've been somewhere for 15+ years, I'm pretty sure that a bunch are older folk, which means they're likely on fixed incomes. The possibility of them finding something elsewhere is nil. Maybe I'm overthinking it because I have a background working in human services with those types of people. When they had issues with food or not making rent, I was the person they'd come to see.

[@multiplesourcesofincome7037]

Business is business, you can’t have feelings all the time when doing it

[@thepeopleschamp9076]

@@multiplesourcesofincome7037 You can have feelings, it just won't benefit you financially. A guy like him would boot a tenant that's been paying $1000 a month for 10 years, just so he could move someone in who'd pay $2000. But where I messed up is, I took a job in Human Services and now I care b/c I've seen the best and worst of humanity. I'm the type of guy where, if I needed to bump up rent, I'd try and figure out an amount that would allow them to keep their place and provide me a decent profit. If that amount was $1300, I'd do it. Even if i had someone who could pay me $2000.

[@worldwideachievers1234]

Thanks for covering the numbers. The first video on this did have some great advice btw. Great video and awesome investment 👌👌👌👍👍👍

[@RentalstoWealth]

Love the long-term strategy! The upside on this one is huge! Excited to see it play out.

[@jeffdorris5321]

Nice work 🎆

[@Von_RX]

great one!

[@Thejasonrogers]

I was just ranting, thanks for the video !!!!!

[@matthewiversen]

No one moves rent like you man so awesome

[@crystalmethshrimp]

Hey Chandler, been a subscriber for the past year and I find this to be The Best channel on real estate investing. I wanted to ask if you utilized the BRRRR strategy 100% of the time? I noticed in your other videos, you mentioned keeping the Reno to a minimum, floors, paint, fixtures (around $10k) but to my understanding for the BRRRR method to work you would need to spend significantly more to pull that 80% equity during the refinance. Could you explain or perhaps make a video about that? Would you mind also sharing what % of equity you anticipate to recover from this 11 unit property? Canadians around Toronto and Vancouver have a passion for real estate and a tutorial video for Canadian investors buying property in the US would be greatly appreciated. keep up the incredible work. You are changing lives my friend!!

[@DayanaPlays]

Interesting!

[@91CBuck]

I like that strategy.

[@dhowto3005]

You did purchase what was initially a bad deal. Thanks for the explanation.

[@keeperzero]

I bought a 8 Plex. Turns out there was a family of Racoons in the roof. $3000 to remove. $8000 in damages

[@JeanDagobert]

It will work out 💪🏾

[@CONNATHON]

How do you cover renovation costs? is it integral with the loan? Did you consider a bridge loan with this property?

[@JonathanSorunke]

Great video! I’ve noticed the bad deals usually work themselves out over time.

[@MattTheMortgageGuy]

Agreed. The right operator can turn a lemon into lemonade with a little time...

[@adaf123]

I see your rich dad poor dad book back there

[@markb1091]

What's the cap rate before and after? Did they market the cap rate in selling it?

[@garrettc8490]

I have a question about rent increases. Most states have a limit on how much you can increase a tenants rents per year. Can you explain this area in more detail?

[@yonmoore]

Beauty is in the eye of the beholder. For someone looking to buy an investment that needs no work, yes, terrible deal. To me, however, what you're describing sounds like a pretty good deal! And I am in fact scheduled to close on a very similar deal next week myself.

[@austinbrunz4932]

Why would you feel bad about raising rents rather than breaking even? Business is business. Don’t feel bad for making money for offering a good for others at market value.

[@josephziolkowski217]

Man property taxes are really low there.

[@andyalejandre4386]

That is so fair!

[@ericcarlson920]

New to this channel, what states is most of this activity taking place?

[@u2fkeys665]

Even season vets like chandler can get bamboozled guys, be careful.

[@samschott5632]

😂 he knew what he was getting into. It’s a great deal once he raises the rents

[@lawrencekdog6243]

Did you watch the video? He didn't get bam-anything'ed

[@u2fkeys665]

@@lawrencekdog6243 😃

[@tdmallet]

Went to download your app, and it's too old for my android I'm running. Need to update. 🙃😉

[@freshnew9010]

Is it just me. All I heard in this video was that 11 family's whom are likely veteran's or elderly people have 30 days to figure out where to live. Wtf smh. This is a very delicate situation. Going from $300 to $925-$950 a month with $100 off ...all in 30 days is ridiculous. Make those apartments $550 and keep it affordable. You'll have the same 11 tenants who've been there for years and kept the property in good condition. This is fucking unbelievable. All of you in the comments are inhumane. Yall really think those tenants have BMWs, Range Rovers, or an Benz staying there. THEY'RE NOT GETTING OVER, THEY'RE GETTING BY. No one in that AREA is going to spend that amount to live in that community.

[@freshnew9010]

You guys need to really slow the down on fucking people over. Money and success blinds you guys from seeing what's really important in life. You get one life to live, have humility. You really think God will honor that? People don't be like Chandler. Chandler is blinded and very ignorant when it comes to his wallet vs the right thing to do. I understand, and I totally get why he would make a profit. It's business right. I'm officially about to get into Real-estate now. But honestly like I said I get it, we all get it. We all love to make money, but me I couldn't pull that trigger. I really feel like God wouldn't honor or respect me for it in the end. To me that's what matters above all things. God over Money so my business practices are totally different.

[@oshitomaha]

I know it sucks man, but we’re living in capitalism. Those tenants would most likely do the same too if the had a chance at it. It’s a circle, and unfortunately while things don’t change, you can only act and think business. You seem like a decent human being, but you should never get into investing. It’s a cold world out here my friend. You eat or get eaten. It’s all legal and Americans keep voting in favor of this system.

[@chrisklupenger4999]

1:24 which video? You pointed to my ceiling 😅

[@bradhaughton6698]

I have a strange feeling you're going to be doing some minor too heavy renovation in some of the units. I would say the renovations going to be basic to medium. Hope you get a rental unit where you can do medium to slightly higher-end renovation.

[@geminivending]

Did you ask for interest only on your loan from this bank that knows you very well? Would be a good idea to generate more cash flow

[@justincrookston9463]

I thought that commercial property was valued by how much income it produced! I’ve heard that multiple times before where the value of the property is based on what rents are at! So I’m just wondering why it was being sold for 1.1M if the rents were so low?

[@NickEberle]

People by multifamily by cash flow or a lot of the time in value add like this it's per door. 11 doors, 100k per door.

[@KidCity1985]

Like he said, poor management.

[@zachm.4881]

Hustling!!! good job; get those doors!

[@chandlerdavidsmith_replied2931]

Thanks for watching and commenting and don't forget to hit the subscribe button for more info...consultation......and advise...textW@sap below Plus+ One Eight One Zero Four One Two Eight Two Seven Four

[@johnbultemq8026]

What does chandler do when an eviction moratorium gets put in place and the court system goes dominant?

[@user-ym7kx8je6o]

Do you think you needed to place an offer that high to get it accepted? Would your competitors have even been able to get this deal financed?

[@claytongodwin9525]

Is is cash full your profit?

[@youtube9220]

Funny thing is, the listing agent sent out a mass email saying he sold the property , all cash, in 45 days due to his extensive marketing and 6 month market rental guarantee. Then, in the same email, said it was made possible with the help of the loan officer in Pocatello and the buyer agent, not mentioning names here. Guess it wasn't cash! Haha. Congrats, rents are continuing to go up. Appreciate ya!

[@bscbinks]

Weird ass comment but ok lol

[@mikerubin290]

Thing is, cash means no seller financing... But if you can get quick financing, no one cares.

[@youtube9220]

@@bscbinks Sorry, my point was, I can't stand when people lie, especially agents. Also, that email totally ousted who Chandler uses for his lender, which if he wanted everyone to know, he would have stated who it is. I just don't lake shady things. It wasn't weird at all. I am local and got the email.

[@csmeyer24562]

I could put 1,000,000 in VZ and make 4.5 % with not many headaches. But there is diversification

[@stevenanderson3386]

Hi I’m newer investor been investing in Realestate part time for about 6 years and have a portfolio of 5 houses and 1 commercial automotive property with 12 units total. I Have a good deal 18unit apartment building well below ARV I’m looking at off market and need a private money lender to help with down payment and rehab. Any recommendations would be much appreciated.

[@andyalejandre4386]

Probably to personal but it would be nice to know what bank

[@ronalvalerio1195]

Chandler in what state is this?

[@WoodUCreate]

Hey Chandler. Can you share with us the letter that you use to formally announce the new rent rate? I’m in a somewhat similar situation and raising rents substantially and I want to do it in the most acceptable manner that makes people understand why I must raise it as much as I am. Thanks

[@phil1954]

Title was definitely deceiving. From the very beginning I could see this was actually a great deal. The rents made the deal cheaper than it should’ve been.

[@nnekaoa9234]

can I buy it pls?

[@Gshkudnkfswhin]

Chandler how are you fairing with the eviction moratoriums. I was going to buy a duplex as my first home and rent out the other unit. Now I’m not so sure if that’s a good idea

[@kevinmus5811]

Chandelier can you tell us how was your life in Canada ?

[@adiosmiamigo]

After you raise rents it'll be about a 7.5% cap with an NOI of about $78k. Not bad at all. I don't know what the typical cap rates are in your market for these types of properties, but ideally they're lower than 7.5% so that you can refinance this property after all the rents are raised and pull some equity out for other deals or at least negotiate a lower interest rate.

[@mikerubin290]

Market cap is 5.5-6%%

[@adiosmiamigo]

@@mikerubin290 I wrote that before finishing the video, his projection has an even higher cap rate after rents are raised than what I projected. Looks like a good deal to me even though it may look bad initially, long term he’s going to be making great money on this deal

[@josecanas6416]

Duuuude it definitely wasn’t managed well

[@baloneynoodles2.0]

It's your deal do what makes sense everyone has the same 24hrs

[@thomasmoore1208]

Not much meat on this deal, even after bringing up rents

[@LambSood]

3.65 rate amazing

[@maloy2316]

What city is this in?

[@loganafraser]

Are the rent increase laws allowing you to raise that much with only a 30 day notice!? Wow CA is rough it would take literally years to raise rents to that amount the right way unless they all move out.

[@mph5896]

What rent increase laws? Idaho is not a socialist state.

[@almateenyazid]

Many investors want to go full in however.... you never hear people/investors such as your self speak on the other systems need for financial freedom such as... Family HEALTH CARE and associated cost. Would you care to elaborate on that?

[@jonfrancobarretto3314]

Out of curiosity, where is this and what is the population? I found a couple of properties like this where rents could be raised but I’m afraid the population size is too low.

[@chrismosjourney1466]

at least it wasn't too much of a clickbait haha good info though!

[@nowtogame]

How much would a deal like that would cost you in due diligence, inspection and closing cost? What percentage do you expect in all of that when you are analyzing the deal?

[@henrycollins2478]

Typical chandler, buys a property, increases rents, makes a bunch of money. I want to see you buy a property and decrease rents🤣🤣🤣

[@ChandlerDavidSmith]

😂😂😂😂

[@KidCity1985]

That would be a great property to turn into wheel chair accessible.

[@nowtogame]

Chandler, my respects... I love your videos and very grateful that you share your knowledge and experiences... I am a Doctor in Little Rock AR, just starting. I am trying to investore but still keep my career and I am trying to put most of my money in real state. You are a huge encouragement dude...

[@peterzotti6430]

300 a month... Im in Los Angeles... You can't even rent a closet for 300 a month... Not even a tool shed or a dog house for 300 a month.... 🐕 🏠

[@gavinhanson9213]

I’m 1hr from LA & pay $4200/ month. There whole year of rent at $300/ month is still less then 1 month in Cali. That’s insane

[@peterzotti6430]

You must be in the OC... 😂

[@antarpreetsingh9038]

Clickbait, this was a fkin amazing deal. The opportunity to raise rents 3x, anyone can see that its not a bad investment let alone your worst.

[@lordlee6473]

Yeah, it’s a clickbait. You knew you were going to raise the rents, and that’s why you paid what you paid. You did the maths already with the new rents before you bought the complex

[@brianscarza447]

Chandler who is your lender?

[@Trenttabor]

How to gentrify

[@Thejasonrogers]

Okay so here’s what’s going on I doubt a real management company was hired because that makes no sense for them to charge rent so low, they make money off the rent amount. It was probably managed by a family member that was renting to their family sense the rent was so low. And cmon man even with the 1% rule on 1m is 10k your not even getting half that. Let alone buying in this sellers market.this is what I would do, increase rents and get rid of this thing OR rent to own so the tenant would want to stay and pay the high rent. End of story.

[@kellyhou9594]

You are actually Dave Ramsey before the bank decided they do not want to work with him and forced him to sell all his real estate… that was why he got broken…hate that happen to you…

[@richardvalentingutierriez6921]

Did you deduct the mortgage payment on the cash flow of $37,000 a year? Just curious on what your true net would be after the mortgage.

[@ChandlerDavidSmith]

Yes

[@ChandlerDavidSmith]

That is true cash for if things go properly

[@richardvalentingutierriez6921]

@@ChandlerDavidSmith Awesome, thanks for the clarification. Keep killing it!

[@ryanshort6021]

Did you add in the renovations you have to do as well?

[@marcochavanne]

The app not working unless I enter an email address is a no go for me fam.

[@ChandlerDavidSmith]

Maybe go buy one then 😂 or make up a fake email. Life is so hard

[@JuancoPRoFlow]

What a douchbag, dude cant enter an email. Wtf

[@MrCantrell14]

1.1 million sheesh

[@bhitz]

Negative dollars should be red not green

[@eliot5220]

The cost per unit is $100,000. That’s really high. The rents even at market don’t provide 1% of acquisition. I’m aiming at properties that provide close to 2% of acquisition per month.

[@whatta7793]

1% is a good target, but 2%? That seems like it'd be near impossible. What sort of properties, and locations are you looking at, to see 2%? That'd be like a gold mine. The only thing I could think of would be used mobile homes or something.

[@eliot5220]

@@whatta7793 I’m buying in Milwaukee. The 2-flats I bought for 65,000$ each generates $1300/month. That’s about 2%.

[@Thejasonrogers]

1:30 there’s your problem. You didn’t buy correctly. All hell could could break but if you bought right you’d still be okay.

[@BenHooker]

So... it didn't seem like it at first but you got a smoking deal?

[@milinparekh3435]

Do you use the binder strategy to increase the rent? I picked up the idea from dion talk youtube channel

[@LARGERTHANLIFE21]

Nah still click bate! It’s a huge value add opportunity I would call this a gem actually.

[@pawelwisniewski6849]

Hi , my name is Chan Your rents going up 300% Oh, you can’t pay…? Meet my friend Yogi

[@kennethporst4359]

So change the rents duhh....the first thing Grant Cardone does is adjust the rents which automatically makes his property worth more value

[@junfak]

Its amazing that you don’t have to deal with rent control. Rent control in east cost is totally ruining property value.

[@geraldlofton]

At Least you Acknowledge it!! (Bad DEAL) better ways to make money 💰 GROW!!!! You k used this as a case study of what NOT to do BUT if u do this the next steps to TAKE!!!!!!!!

[@milinparekh3435]

How you are going to raise the rent if rent control in place like California state? Is it possible to give 60 days notice to tenants who pays below than average rent and in California you can’t raise the rent for more than 5-7% (included for 2% for inflation adjusted)?

[@mph5896]

Or you just don't do business In a state like CA

[@milinparekh3435]

Please make video how you raise the rent me step by step- please discuss process about it? Which state?

[@drjsantos15able]

Even if you double the rents it's still below market value, where in the hell do you find apartments for $300 a month lol

[@ipeteagles]

918.18 rent/11=10,100

[@drjsantos15able]

@@ipeteagles yea I know that, triple the current rent

[@stressfreepaperchase3215]

Wait they are paying $300 a month and its legal to raise the rents to $1000? Really?

[@Lili-ey1nd]

Yup as long as they give you a written notice beforehand of the raise , and above 5% or more it’s completely legal to raise it to 1million a month

[@charleskayser4646]

Say, "what in the heckalopter" on your next video

[@jmike1373]

Get your sound guy to work on that bleep, shit was loud af...fawkin hell mate

[@InvestAndGrow2020]

Chandler … what is your bank goes under and calls your notes? DUN! DUN! DUN! I know your heart drops thinking and reading that.

[@lawrencekdog6243]

What are the chances those notes have already been sold to other banks?---DUN DUN DUN!!!!!!

[@Vicpadilla79]

…but if you and I know that the market is absurd… Then…

[@Vicpadilla79]

@🖇 Pinned. by Chandler David Smith wasn’t meant as a diss bud. I’m a real estate investor too. But as you know, we’re not infallible.

[@Lili-ey1nd]

@@Vicpadilla79 that’s not him

[@larrysummers5556]

Hurray tax write off

[@drjsantos15able]

Funny how you say you overpaid for the property but when you raise the rents your property appreciates. If market value is almost triple what they are paying that means your property will be atleast double the value so worth about $2 million for it

[@andyalejandre4386]

Wow super low haha

[@darragh100]

On the rent increase thing, imagine how much they could've saved over the years to buy their own place or invest somewhere

[@kingrose1215]

That requires discipline, frugality and patience the average person simply doesn't have. Remember 75% of people live paycheck to paycheck

[@alexbent3852]

Riding the CLICKBAIT wave?

[@alhoy9146]

😂😂😂😂😂😂😂😂😂 get out of it

[@Dmgernant1]

your laugh Man please don't laugh

[@avidediter66]

These situations are why socialists say landlords are the scourge of the economy. But those 11 tenants were lucky and should have been saving their money to invest. Essentially they were house hacking

[@chandlerdavidsmith_replied2931]

Thanks for watching and commenting and don't forget to hit the subscribe button for more info...consultation......and advise...textW@sap below Plus+ One Eight One Zero Four One Two Eight Two Seven Four

[@davelee999999]

You’re a genuine Jared Kushner. Negatively impacting so many families. Karma hurts Chandler…