Re zoning to Multi family Creating (18) Units

[David Miller]

Investment Info:

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

Purchase price: $340,000
Cash invested: $105,000
Sale price: $695,000

Purchased existing 10 units 2 sfr's 1 6 unit building and a 2 unit building. Changed the zoning and obtained approval for an 18 unit apartment building.

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

It's a tremendous opportunity to develop a new apartment building as the property has existing income while going through a zone change.

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

I know the broker from another deal and the seller finally came to terms with the real value and once he decided to sell for what I was willing to pay for the property, I made the offer.

How did you finance this deal?

Had to use Hard money, what a nightmare, the first hard money guy who I have worked with on my flips had committed to let me come into the deal with 50-60K, but 2 days before we were supposed to close they pull out of the deal and will not loan on the project at all. Found another lender and I had to come up with double what the original lender quoted.

How did you add value to the deal?

Re Zoned the property from sfr to multifamily

What was the outcome?

Success