Linton Oaks Duplex Purchase III

[Elliot Rivera]

Investment Info:

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

Purchase price: $194,000
Cash invested: $20,000

Duplex purchase in Linton Oaks.

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

Taking over properties with deferred maintenance with opportunity to repair and bring rents up to market rate is R&S core strategy. This type of deal is consistent with those efforts.

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

Found portfolio on MLS. Negotiated some closing costs and discounts off of ask based on some issues found during due diligence.

How did you finance this deal?

Commercial lender. 25% down payment, 10 year IO option with 30 year term to improve cash flows.

How did you add value to the deal?

Cosmetic improvements, reface bathroom shower, paint, light fixtures, plates/outlets, etc.

What was the outcome?

Achieved COC returns in excess of 10% and projected longer term IRR of between 16-18%.