Complete gut out and addition project

[Victor Ong]

Investment Info:

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

Purchase price: $532,500
Cash invested: $550,000

Complete gut out and rehab existing 4plex, and add 1 more unit

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

In place cashflow able to sustain mortgage with development opportunities

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

Redfin

How did you finance this deal?

HUD 203K Mortgage

How did you add value to the deal?

Complete gut existing structure down to the studs and rehab everything. Add 1 more unit next to the parking.

[Victor Ong]

@Paul Welden yes, we use FHA203 for the 4plex rehab and then apply our own fund for the extra unit. We didnt expect the rent to appreciate that much but the area took off and the rest is just history. It’s not hard to find quality tenants in LA. For above the market rent, there are plenty of high income earners with above average credit quality. For affordable housing, we can always go with section 8 for guaranteed payment. Both would pass our underwriting standards.