2 Homes to 10 Apartments

[Andrew Greer]

Investment Info:

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

Purchase price: $775,000
Cash invested: $560,000

Purchased 1 lot and two homes next to each other. Demolished homes and assembled lot to build out 10 unit apartment complex

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

I am always looking for single family homes that have been rezoned to build out multi family in areas that are experiencing higher density. This happened to be located in a neighborhood going through that type of change.

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

It was listed on the MLS and it was not seen as a 10 plex but as 2 homes and a lot so I was in a great position.

How did you finance this deal?

Syndicated out the project with 2 investors

How did you add value to the deal?

Tore down the homes and built 10 more apartments

What was the outcome?

We get the final permit in about a month so it is TBD.

Lessons learned? Challenges?

We had issues with the water department on this property and with engineering on some of our design.

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

I had an agent on the front end find the deal