1 Property with 3 separate units.... Adding a 4th door!

[Nick Macklin]

Investment Info:

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

Purchase price: $112,500
Cash invested: $20,000

.68 Acres with 3/1, 2/1, and 1/1 units at purchase. Adding a 1/1 below the other 1/1 for ~15k to add $650 additional in rental income and boost the value for refinance. Total rent will be $2600 with an all in investment of about 139k after refi. ARV expected to be 190k and I plan to pull all capital invested out of the deal. After refinance it should cashflow $1050+. Insurance is insane right now so I also anticipate that number to increase once I have all my 4 point inspections done and get a better policy for less.

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

It cash flows like a beast!

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

I found it through a wholesaler that contacted me on referral. I brought other investors in to buy some of the portfolio and negotiated a lower price on the unit I purchased.

How did you finance this deal?

Private money from a family member and rehabbed with my own capital.

How did you add value to the deal?

Plan on adding a 1/1 unit in a space that used to be a garage.

Lessons learned? Challenges?

Insurance is getting tricky in FL. If possible I need to get 4 point inspections on all properties prior to closing so I get the best policy for the best price available.

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

Initially just my contractor but I will work with a commercial lender to get the best financing I can on the refi.