Silver Lake Tenants in Common

[Micah Blyckert]

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $880,000

Cash invested: $250,000

4 Unit building in Silverlake (Los Angeles). We are half way through a full gut remodel and shift to the floor plan, changing the 4, studio units into 1/1's. Once completed, we will be selling each individual unit as a TIC "Tenants in Common" ownership. Each unit is expected to sell for ~425k (1.7M Gross)

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

I've been following the recent popularity of Tenants in Common units selling in East LA, over the past year, and have been interested in taking on a deal of my own. (and then do a couple more, this year)

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

The deal had been in and out of contract 3 times, over a 6 month period, on the MLS. (There was an elderly, long term tenant in one of the units and a considerable amount of necessary repairs, both of which became deterrents for previous buyers)

How did you finance this deal?

My partner and I split the 20% down payment 50/50. The remain loan amount of the purchase price ($720k) and construction loan ($250k) were funded by hard money financing.

How did you add value to the deal?

The tenanted units were vacated and will be completing a down to studs remodel.

What was the outcome?

Time will tell

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I'm licensed in CA, so I represented myself on the purchase.