Converting Multi-Family to Single Family - Tear down to studs

[Michael E Drane]

Investment Info:

Single-family residence fix & flip investment in Indianapolis.

Purchase price: $118,000
Cash invested: $310,000
Sale price: $385,000

Converting home setup as multi family with 3 units, back to a single family home. Complete renovation, down to studs and build out. Currently in Phase 2 of 3. Completion date 12/31/18

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

The challenge of a whole house rehab, and the unique reversal from multi-family to single family, oh and of course the ROI :)

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

Wholesaler. Negotiated from 130K to 118K based on repair estimates

How did you finance this deal?

Private Lender

How did you add value to the deal?

Open floor plan, roof top deck, loft, office.

What was the outcome?

Yet to be seen

Lessons learned? Challenges?

Rehab budget has crept up steadily due to unexpected issues with roof, flooring and plumbing. Thank God I'm dealing with private lender as some surprises would have been challenging to fund if dealing with a bank. ROI still looking good midway through the project.