Luxury Duplex primed for STR 2 blocks from the beach

[Isaiah Howard]

Investment Info:

Small multi-family (2-4 units) industrial investment investment.

Purchase price: $726,000
Cash invested: $1,300,000
Sale price: $4,500,000

We are developing a 4 story a luxury Duplex.
Property is primed for short term rentals with conservative estimates of ($40,000-$50,000) per month.

Build cost 2 million ($240 per sqft for a 5400 sqft duplex)
(Sale price $650 per sqft)
Upon stabilization, the properties market value is projected to be between 4.5 and 5 million. Our plan is to sell or refinance within 15 months targeting a sale price of 3.5 million.
This property is two blocks from the beach. With massive STR potential.

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

The large margin of profits when developing single-family homes and duplexes is significantly more than fix and flips.

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

A business partner brought this deal to us.

How did you finance this deal?

We were able to finance the steel with private equity partners.

How did you add value to the deal?

We are the developers and take care of project management. We promise returns for our partners and worked with previous partners to put together build plans to quickly get the ball rolling with this project.

What was the outcome?

Our partners got a fair amount of equity for this project. We currently are in the process of building this, and we have more projects that we are working on for other partners to join.