1031 exchange from three unit to 14 unit property

[Rennie Gabriel]

Investment Info:

Large multi-family (5+ units) private money loan investment.

Purchase price: $1,200,000
Cash invested: $550,000

1031 exchange from three unit to 14 unit property

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

Deferred maintenance and poor management

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

Loopnet

How did you finance this deal?

cash from 1031 and owner carry back

How did you add value to the deal?

$250,000 of upgrades and remodeling

What was the outcome?

Increased the income in 18 months from $6500 to $16,000 per month

Lessons learned? Challenges?

make sure to get permits for everything