Creating housing in existing buildings, and improving rental stock

[Renae Bouchard]

Investment Info:

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

Purchase price: $350,000
Cash invested: $120,000

This was a 2 family with long term tenants. Both units were extremely run down with the same folks living in them for more than 15 years. Our plan to convert an unfinished space to 3 family came to fruition in 2023, and we are working to convert one of the three bedroom units into two 1-bedroom units with lofts, using the high attic space in the original Victorian structure.

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

Purchase price was a steal

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

Partner Mike Cohen found this deal off market and the seller wanted it for what it had been appraised for the prior year.

How did you finance this deal?

Conventionally with Community National Bank

How did you add value to the deal?

Force appreciation from 2 family to 3 to 4. Used the equity to fund the construction every time.