6 Unit Property - Partial Rehab and Flip

[Tara Kinney]

Investment Info:

Large multi-family (5+ units) buy & hold investment in Davenport.

Purchase price: $232,000
Sale price: $325,000

6 unit apartment building, C class neighborhood. Fully rented, below market rents. Plan to raise rents as leases come due and update apartments as current tenants move out to make units more attractive. Working with other landlords in the area to improve the quality of the neighborhood. Utilites all paid by tenants. After improvements and rents increased, should be able to increase value of the property by roughly $150K

Rehabbed 5 of the 6 units - improved rents. After all was said and done, I profited about $100K. I learned a ton from this deal. Location is number one, poor location = poor tenant mix. Harder to raise rents even in nicely rehabbed units. 1031 Exchanged into a property in Arizona which I now do STR with.