Multi-Exit Land/Rental Flip - Reno, Expand, or Redevelop

[Ian Brown]

Investment Info:

Large multi-family (5+ units) fix & flip investment.

Purchase price: $120,000
Cash invested: $5,000
Sale price: $269,000

Medium Density 1.5± acre site with potentially 5 existing rental units (4 concrete block structures + 1 mobile home) with excess land for additional development.

Property was purchased to either rehab/redevelop/or sell.

Zoning allowed up to 28± residential units.

Property was quickly sold with seller-financing to local investor and seller-financing will mitigate short-term capital gains.

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

The deal had flexibility - could BRRRR the deal, or redevelop with up to 28 unit MFR, or rehab and add more units, etc...

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

Wholesaler

How did you finance this deal?

Cash

How did you add value to the deal?

Clean up the grounds, pay for all DD docs (Survey/Title/Environmental/Soils/Geotech/Etc) and professionalized the marketing/exposure

What was the outcome?

Quick sale to local investor

Lessons learned? Challenges?

Trust your gut.

Multiple exits are always a plus and I would have been happy to hold it or partner with a developer/builder if sale hadn't been so readily available.

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

Brokered on my own behalf