Property Purchase #2- Value add with vacant lot

[Kelly Skeval]

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Ithaca.

Purchase price: $165,000
Cash invested: $10,000

2 unit duplex
2 bed/1 bath per unit

This property had a grandfathered variance allowing a small parcel to be subdivided off for a new construction

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

This property could be subdivided and built on
It was next door to our current duplex that we occupied
Seller was willing to hold the entire note at 3.5% with only $10,000 down

How did you finance this deal?

Seller held over 90% of the note at an interest rate of 3.5%

How did you add value to the deal?

Brought rents up to market rate
added laundry room

What was the outcome?

subdivided the property and built a duplex on the vacant lot