Logan Square 6 Flat - V1

[Mark Kappelman]

Investment Info:

Large multi-family (5+ units) buy & hold investment in Chicago.

BRRR to a 'T'.
Bought a 6 flat, full gut ($700k rehab), rented it out, refinanced, and rolled proceeds into another project.

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

The power of commercial financing.

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

Short-sale, on the MLS, let the agent double-end the deal.

How did you finance this deal?

Construction loan through community bank, and then refinanced via a non-recourse small-balance Fannie Mae loan (10 year term/30 year am/3 year IO).

How did you add value to the deal?

Eviciting non-paying tenants, full-gut rehab, found new tenants that are college grads with great jobs.

What was the outcome?

Fantastic cash flowing building in a prime Logan Square location.

Lessons learned? Challenges?

Too many to cite. Reach out to me if curious :)