Downtown Fargo 12plex STR Conversion

[Kyle Reedstrom]

Investment Info:

Large multi-family (5+ units) commercial investment investment.

Purchase price: $850,000
Cash invested: $335,000

Historic downtown Fargo property. Looking to STR top floor lofts and furnish 10 units as MTR.

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

Bullish on DT Fargo growth and Airbnb opportunity there.

How did you finance this deal?

70/30 investor fund structure to make this deal go. Bank pushed us to 40% down payment so also executed a $85K seller carry-back loan to cross the finish line.

How did you add value to the deal?

Conversion of LTR into furnished MTR and STR

What was the outcome?

Stabilization in 12 months.

Lessons learned? Challenges?

Always get multiple lenders working for you in the due diligence process!