For Sale 2-Story brick building with 8 one bedroom units

[Galina Krichmar]

Investment Info:

Large multi-family (5+ units) fix & flip investment in Jacksonville.

Purchase price: $300,000
Cash invested: $80,000

2-Story brick building with 8 one bedroom units fully rented. 10% cap rate the first year.

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

I was interested in investing in Multi-unit property to have at least 10% return on my investment.

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

Found the deal on Realtor.com

How did you finance this deal?

Bought all cash

How did you add value to the deal?

Value was added by doing major renovations, hired reputable management company.

What was the outcome?

Would like to sell the property to buy other investments.

Lessons learned? Challenges?

We hired a management company, Blue Peak Realty, which is a subsidiary of WC Equity Group. At first they presented themselves as a honest professionals. It turned out that they were taking rental income and using it towards 'renovations'. 6 month later we uncovered the work was not done. When confronted, Mr. Westfield lied, wiggled out of responsibility by covering up. We had to hire a new management company and a lawyer. There is a pending lawsuit for the damages caused by their dishonesty.