Major addition and multi family build out

[Reed Kirk]

Investment Info:

Small multi-family (2-4 units) fix & flip investment.

Purchase price: $325,000
Cash invested: $340,000
Sale price: $865,000

Major addition and ADU build out. Convert to condo and sell.

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

Add value as cosmetic flips are very tight

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

I'm an agent and it was a distressed property on the market

How did you finance this deal?

I know multiple private lenders and chose the one that worked out best

How did you add value to the deal?

Square footage add with ADU new construction build

What was the outcome?

I converted it to condo and sold both units for more than they would have sold for together.

Lessons learned? Challenges?

Tight sites with lots of moving parts are harder to make happen. This was probably the hardest deal I'll ever do and now everything else seems much more straight forward.

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

Myself? It's what I specialize in and I don't sell houses so all I focus on is deal creation and finding the next one for my clients. I also flip myself which helps since I know all of the moving parts that are needed.