SFR converted to 4-unit STR

[Gwen Stavros]

Investment Info:

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

Purchase price: $740,000
Cash invested: $450,000

Seller financed. Converted from 3/2 SFR to 4-units STR-MTR 6/4. Distressed condition purchase. Subdivided off the adjoining 3 acres to become free and clear and now am developing into 9 more units using the land as down payment for construction.

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

The land came for free once I forced appreciation on the structure and could sub divide it off. Seller financing made it work. The horse property gives me a leg up.

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

Communicating with agents and watching the market.

How did you finance this deal?

Seller financing wasn't on the table, but I looked up the mortgage information and it was free and clear. I always ask when there is little or no loan.

How did you add value to the deal?

I added value by installing four laundry rooms and kitchens in the existing spaces and separated them to create individual rentals.