Maximizing city zoning.

[Cyndi Hardman]

Investment Info:

Large multi-family (5+ units) other investment.

Purchase price: $800,000
Cash invested: $200,000

This is a property zoned for multi-family units. Currently, it has a SFH, which was rehabed in 2014. The goal for the property is to add a 4-plex. The owner of the property is looking to JV with an invest to build the 4-plex.

The property is .45 acres.

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

Seeing that the city is short of housing and that the city council had already embraced the wisdom of making 100 W a multi-family zone.

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

The heirs of the former occupant put out big flags advertising their desire to sell it.

How did you finance this deal?

VA home loan.

How did you add value to the deal?

80% of the home was rehabbed and updated. New plumbing to include new sewer lines have been put into place.

What was the outcome?

I lived in it while rehabbing. Now it is rented at $1400/mo. 2+ bedrooms/2 bath with carport.

Lessons learned? Challenges?

The initial sale price could have been negotiated lower.