3 Family condo conversion in Salem Ma

[Eric Sullivan]

Investment Info:

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

Purchase price: $527,500
Cash invested: $350,000
Sale price: $1,289,000

Purchased a legal 2 family. We had it converted to a legal 3 by using our attorney and going to the building inspector. The property met the requirements to be grandfathered in pre 1965 when the zoning was put in place. This gave us a large amount of upside when it came to the ROI for taking some risk. The numbers still worked as a 2, but are a grand slam as a 3 unit.

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

Off market, agents were involved.

How did you finance this deal?

Conventional 25% down + 100% of construction costs from the bank.