bushwick - short term hold

[Yelena Utin]

Investment Info:

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

Purchase price: $480,000
Cash invested: $120,000
Sale price: $925,000

Did not need to hold it for long. Bushwick hit the ceiling within 3 years.
Refinancing to update didn't make sense for a <10yr hold so I put it on the market.
Several offers, sale took 6mo due to violations the previous owners didn't take care of, had some expedited, did not end up mattering much in the end; final 2 violations the expediter couldn't remove in time, so 1k was put in escrow.

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

bushwick, where I had lived for 6yrs was about to start developing

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

it took 2yrs to find a multi-fam under 600k that I thought would generate an income. this property was my 3rd contract and first purchase. other 2 fell through. the first agent I worked with had come back around after the 2nd property fell through, with this property, which had been on the market for a day. I made an offer immediately and luckily for me it was a divorce situation fire sale.

How did you finance this deal?

small local union or bank, loan got sold to Chase within 3mo

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

I got licensed in nyc after my purchase, so I acted as my own agent under a broker and saved 9k in commission.