Updated over 2 years ago on . Most recent reply
Detached 4-Plex New Build
Investment Info:
Small multi-family (2-4 units) buy & hold investment.
Purchase price: $600,000
Cash invested: $130,000
Detached 4 plex - Private community, cottages. We rent these furnished.
What made you interested in investing in this type of deal?
We are in real estate and wanted to take advantage of the fast equity in building something from scratch. We designed it and built it with a local builder. Less maintenance and cap x with a new property.
How did you find this deal and how did you negotiate it?
We picked up the last for sale by owner, held out until we were ready to build and used the last value toward the down payment.
How did you finance this deal?
Normal bank financing.
How did you add value to the deal?
Did everything from designing the home to furnishing, listing on short term rental sites. We continue to add value with landscaping, paving, a gazebo etc.
What was the outcome?
Awesome outcome, over the last several years it has increased significantly in value and is one of our favorite properties.
Lessons learned? Challenges?
Maybe work with a bot so beginner builder. 5 days before closing he realized he underbid the project. We couldn’t close because he was upside down. We had to come up with cash to close quick in excess of 85k.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
We are in Real Estate. Love working with Paul Leishman with Movement Mortgage!
