Knowing a No Brainer when you see one

[Neil Ginty]

Investment Info:

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

Purchase price: $382,500
Cash invested: $250,000

This was a duplex with a 4-car garage/workshop which had plumbing and power which we very quickly converted to an 749 sq.ft ADU! Holding costs were actually a 5% cash-on-cash return, the ADU just made it sing!

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

It would cash flow immediately and the 4-car garage was a very obvious and easy value add

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

MLS and an excellent agent who secured us the deal for $500 more than the next highest bidder. Ruben Haynes, Sacramento

How did you finance this deal?

Conventional for purchase
401k loan for construction

How did you add value to the deal?

Added a 2-bed ADU

What was the outcome?

Amazing cashflow (~20%) after a year of 5% cash on cash while "holding" it

Lessons learned? Challenges?

When you see a good deal, jump on it BUT have done the ground work of finding a superstar agent

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

Yes, Ruben Haynes, Sacramento - he got the deal over the line

[Neil Ginty]

Cheers @Joshua Messinger

Feel like you have no choice but to get creative in California! It does kinda make the deal analysis more fun, just trying to see what could be done. The deals are there though, you just have to find them

Haven't branched out of state yet? where are you finding success??

Cheers, Neil