4 plex transformation.

[Joseph Graeve]

Investment Info:

Small multi-family (2-4 units) fix & flip investment.

Purchase price: $580,000
Cash invested: $150,000

Increased Gross rents from $5100 to $7250 per month.
$720k all in price. After rent increase, valuation at $850k.
Before and after pictures here - https://drive.google.com/file/d/1rtcRBfEeoKxNteVOOBw1Duqs_8-...

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

I love the idea of value add multifamily because you have the rents to fall back on if the primary plan of flipping doesn't pan out like you hope.

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

I found it through a wholesaler.

How did you finance this deal?

1 year Bridge loan with renovation funds.

How did you add value to the deal?

I renovated all 4 units. Complete renovation. I also added Laundry rentals to two units to increase gross income.

What was the outcome?

Amazing outcome. I achieved the rents I projected and a higher value than I projected.

Lessons learned? Challenges?

I slightly underestimated the renovation budgets. I am glad I self managed only if to learn the lessons I did to be able to manage my future property managers but the next time I do it I will use a property manager even through a short flip project.