8 studio apartment BRRRRR deal!!

[Joseph Cornwell]

Investment Info:

Large multi-family (5+ units) buy & hold investment in Bethel.

Purchase price: $55,000
Cash invested: $155,000

Old Farm house that was converted to 8 studio apartments. This project will be a full gut job, and we will be replacing all mechanicals, changing the layouts, new flooring, kitchens, bathrooms, etc. ARV should be around 300k, and will have gross rents around 3600/mo after renovations. Later plans include adding 8 or more storage garages behind the building since there is a large unused area on this lot.

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

Huge value add opportunity in a growing market. It will have large room for rent increases and is in the path of progress for future value.

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

This was listed on the MLS, but because of its condition had very little interest from most buyers.

How did you finance this deal?

Commercial mortgage with construction funds built in.

How did you add value to the deal?

Full top down renovation to bring in new tenants and raise rents.

What was the outcome?

In progress.

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

I was my own agent, and my construction company is handling the massive renovation project, but they do great work!