Triplex + Bonus Land Deal

[Natalie Allen]

Investment Info:

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

Purchase price: $225,000
Cash invested: $15,000

3 - 2/1 apartments. LOTS OF EXTRA ROOMS WITH NO WINDOWS. Large outdoor space, back lot is over half an acre, we plan to build additional units in the back. Estimated ARV upon completion $365k.

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

We have had success brrrring other deals and this one had a ton of potential!

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

another investor who I've worked with new that this was exactly the deal I was looking for and he purchased it at an auction with me in mind. He financed the whole purchase price, closing costs & gave a $10k allowance for repairs. Oh and offered to push out the first payment 3 months. He gets to mark up the purchase price and he will get interest only payments until we refinance so it's a win win!

How did you finance this deal?

100% seller financing, then cash out refi with a broker

How did you add value to the deal?

New Flooring, New Water heaters, new paint, fixtures & updated cabinets, adding a wall to make an extra bedroom. Painted tile in areas that had two different types of tile.

What was the outcome?

Still in progress. One unit rented right away sec 8, the others are under construction but nearing completion.

Lessons learned? Challenges?

check water heaters prior to purchase. I somehow completely missed this on my check list and it was a HUGE expense. I've also learned to just do this work myself. It took twice as long for the contractor we hired to do the work and we ended up firing him anyway and doing it ourselves. On this one, it would have been better to diy since we've done it before. Sometimes diy is not the way to go but not the case on this deal.

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

Private Lender.