Six Unit 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. 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. This was a 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.

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

Interested in scaling

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

MLS- Realtor

How did you finance this deal?

Bank commercial loan

How did you add value to the deal?

Rehabbed 5 out of 6 units. Removed non-paying or problem tenants.

What was the outcome?

After all was said and done, between income, expenses and rehab costs, I profited roughly $100K in just over 2 years. Honestly, just happy to have made a profit.

Lessons learned? Challenges?

A lot of learning and a lot of headaches. Glad to have done it and glad I profited. Now that I have a solid team in place with people I trust, I'd be willing to try it again, but would be much pickier on location. Location, location, location. It's hard to build value in a poor, crime stricken neighborhood. Harder to get rented or raise rents that is known for high crime. Have a good team in place.

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

Cory and Victoria Gamble (CV Investments) are literally the heart and blood of this property making a profit. They are such genuine good people, that want to do right by others and are probably the hardest working people I know. So glad to have met them through Biggerpocket meetups and to joined forces with them!