Multi deal in great neighborhood
Investment Info:
Small multi-family (2-4 units) buy & hold investment in Athens.
Purchase price: $775,000
Cash invested: $250,000
Sale price: $950,000
Opportunity to buy a great house well under value. Difficult to appraise because there were no comps in the area. One of the few multi family properties in this SF neighborhood that had gone up for sale in the last 3 years. 3 story on a large lot, 1952 build with great bones. Had to close with hard money on a 6 month note from Easy Street Capital. Completed reno work in 2 months and had all 3 levels rented as midterm. Closed refi in September after 3 appraisals to get correct valuation.
What made you interested in investing in this type of deal?
Great location in the best neighborhood.
How did you find this deal and how did you negotiate it?
On MLS for months. Negotiated with seller for a long DD to complete a 1031.
How did you finance this deal?
Hard Money first then a refinance.
How did you add value to the deal?
Paint, floors, bathrooms, general maintenance, landscaping
What was the outcome?
Fully rented and refinanced
Lessons learned? Challenges?
Unique properties can be hard to appraise. Have multiple funding options in the works because one might fail and you will need the back up to close on time.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
I am the RE professional. Easy Street Capital was able to close the hard money acquisition and Regions worked the refinance.
