Build 2 Rent Townhomes in Kissimmee FL

[Brock Holliman]

Investment Info:

Large multi-family (5+ units) other investment in Kissimmee.

Purchase price: $1,130,000

This is one of 3 buildings! Each building includes 6-7 individual Build 2 Rent townhomes. They all feature a very sleek & modern design.

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

This was an already approved and ready to go subdivision for the first 7 units. The other buildings behind had to go through the municipal development process which is always a pain. But the first 7 units were able to get some cash flow coming in while we wait.

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

I found these lots on the MLS. They were 2 different sellers, but we were able to close on them very quickly. Given the market conditions during the time of purchasing these lots, there wasn't a lot of negotiating when it came to price. We made a couple of attractive offers and got the deals closed.

How did you finance this deal?

I got a private money loan on the lots & construction. As soon as they were rented, I would refinance each property. They were all individually parceled, so it allowed for some flexibility.

How did you add value to the deal?

With owning a construction company that specialized in building, this made it easy for us to build our style product and quickly add the value big time. We also updated the exterior of the neighboring townhomes across from our first building. They were built in the 1980s and had a peach color paint and red tile roof. We painted that building white and painted the roof a gray color along with resurfacing the parking lot.

What was the outcome?

We refinanced the first 7 units at an average of 4% (miss those days!). They originally rented for $1595-1650. We now average $1845 per month and are all occupied with great tenants.

Lessons learned? Challenges?

Next time, we will go with wood fire walls on the second floors. This caused a lot of extra headache on the job along with unnecessary costs.