Triplex with a bit of everything

[Layton Gilbraith]

Investment Info:

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

Purchase price: $355,000
Cash invested: $100,000

Contributors:

Might as well do a complicated deal for your first one. Bought a Triplex with previous fire (but not structural) damage. 2 units previously renovated and rented out by flipper. 3rd unit in need of complete renovation (demo, electrical and rough in plumbing completed but needs insulation, drywall, the works).

Bought long distance during the 'Rona virus, list price was 400k, bought for 375k plus seller credit of 22,500 to put into repairs.
Estimated ARV of 450k when repairs complete.

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

The buy and hold numbers in Windsor are just so much strong for Duplex+ properties vs SFH. Was originally just shopping around for SFH deals and dipping my to in when this opportunity came along.

I love that 2 of the units are already cashflowing > the mortgage costs so reasonably safe while I do the renovations on the 3rd unit. Will give me a great environment to learn more about construction costs/budgeting while still cashflowing.

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

pre-MLS listing brought to our attention by our realtor.

How did you finance this deal?

20% down, conventional mortgage with plans to re-fi after renovations

Many A-lenders didn't want to touch it because of the fire damage, but eventually found one that did.

How did you add value to the deal?

Renovating the 3rd unit

Lessons learned? Challenges?

Who knew deals could be so complex. We had multiple things almost sink the deal including initally losing the deal to a buyer that fell through. Late into the night price negotiations and dealing with Corona virus limitations all while being 1000s of Kms away across the country.

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

Great realtor who really made this deal happen and has the same investing mindset as us. Scott Innocente for any looking in the Windsor, ON area