My first project all by myself

[Andrew Jennings Freerks]

Investment Info:

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

Purchase price: $285,000
Cash invested: $135,000

Side by side 2-family properties (4 units in total), which needed either updating or a full build out. We completed the updating of two of the units so far, and rented both. Currently, we are framing out the shell of the other 2 family, and just started electrical. Purcahse price: $285K (off market), $225K estimated reno. Project cost: $510K, with an ARV of $750K. Once complete, I expect this 4 family to gross $7K monthly, with a net cash flow of $3K and have $250K in equity built in.

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

I wanted to prove to myself that I could complete a project on my own. The pricing, seller's vibes, location all made it seem like a sweet deal.

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

Off market, through connections I made in the city

How did you finance this deal?

hard money, renovation loan

How did you add value to the deal?

updated 2 units, added bedrooms and completely built out a shell of a 2 family adding two more units.

What was the outcome?

We'll see but so far so good

Lessons learned? Challenges?

Deal with contractor timelines, and bankers funding strategies