515 Davis St - Multifamily Deep Value Add

[Cody Journell]

Investment Info:

Large multi-family (5+ units) buy & hold investment.

Purchase price: $310,000
Cash invested: $350,000

This was a full rehab 6 unit multifamily building.

Our firm did everything from locating and acquiring the project, to managing construction, and then finished up by leasing out all 6 units for a premium rent.

We used a construction loan to secure the property and do the rehab. 12 month term which we were able to do construction and lease out all units before taking out the original loan with a permanent commercial loan.

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

Lots of value add with a vacant unit and can pull all our cash out from post rehab and stabilization.

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

Through my network. Negotiated directly with seller.

How did you finance this deal?

Private money for acquisition and construction, then a commercial loan for the permanent.

How did you add value to the deal?

Full rehab and high market leases.

What was the outcome?

Bought at $310,000, rehab for $350,000. Appraised for $1.2M.

Lessons learned? Challenges?

Always takes longer than you hope for. Would keep a tighter grasp on budget and timeline with team.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Yes Chris Lemons with Creative Financing Solutions believed in us and gave us the opportunity.