Transforming a Multi-Family Building: A Journey of Renovation and Rental Success

[Alyson Anderson]

Investment Info:

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

Purchase price: $250,000
Cash invested: $80,000

I took on the challenge of buying a multi-family building at 111 E Cecil Ave, North East, MD 21901, and turning it into a rental with four units. The 2,506 square foot home on a 5,800 square foot lot needed a ton of work, including renovating the roof. With determination and a skilled team, we transformed the property into a beautiful rental. Now, it stands as a welcoming home for tenants to enjoy.

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

I was interested in investing in this type of deal because of the potential for generating multiple rental incomes from a single property, the promising location, the opportunity for renovations and improvements, and the expected returns on investment.

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

When it came to negotiation, I approached the seller with a fair offer based on market value, considering the property's condition and the scope of renovations required. I engaged in open and honest communication, discussing my plans for the property and emphasizing my commitment to revitalizing it. Ultimately, we reached a mutually beneficial agreement that allowed me to acquire the property and begin the transformation process.

How did you finance this deal?

By carefully assessing my financial situation and exploring various financing options, I was able to secure the necessary funds to acquire and renovate the multi-family building. The goal was to find a financing strategy that aligned with my long-term investment objectives while ensuring the project's financial feasibility.

How did you add value to the deal?

I invested in extensive renovations throughout the property. This included upgrading the roof, which was a critical component of ensuring the building's structural integrity. I also improved the plumbing and electrical systems, updated fixtures and finishes, and incorporated energy-efficient features to enhance the property's appeal and functionality.

What was the outcome?

After completing the renovations and listing the property for rent, I quickly attracted a pool of interested tenants. The demand for the newly renovated units exceeded my expectations, and I was able to secure reliable and responsible tenants for each of the four units.

Lessons learned? Challenges?

I learned the value of patience and perseverance throughout the entire investment journey. Renovations often encountered unexpected obstacles, and finding suitable tenants took time. However, staying focused, adaptable, and committed to the project's success helped me overcome these challenges and achieve favorable outcomes.