Portfolio Duplex Deal In Westville South Jersey

[Mike Bonadies]

Investment Info:

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

Purchase price: $215,000
Cash invested: $31,250

The Deal: Three separate duplexes all of which were physical neighbors to each other. We picked up this property in a portfolio deal that included another mix use Quadplex. It was an estate sale and the current owners inherited the property and did no want to be landlords.

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

What Made It Interesting: These duplexes and two value adds and additional government benefit that made it an even juicier deal. The first value add was that rent rolls were not market rate and we had an opportunity to drive them up over time. The second was that properties had opportunities for cosmetic updates allowing us to BRRRR them. Lastly, these properties were in an economic redevelopment zone so by improving them we were awarded tax abatement for 5 years.

How did you finance this deal?

The Financials: We used hard money to purchase the entire portfolio including this property. 10% came out of pocket for the entire portfolio and the hard money lender covered the rest. We are refi-ing the properties as portfolio too which gives us some unique rate benefits. The ARV for these three is approximately $460k so by the time we finish refi-ing the properties we will be almost zero dollars out of pocket.