San Diego Multifamily Deal

[Andy Eakes]

Investment Info:

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

Purchase price: $880,000

Two single family homes on a 6700 square foot lot. One 3bed 2bath and the other a 2bed 1bath. Generous lot and zoning allows for more units to be built over time. Current rent estimates with existing units though provide us good cash flow in a highly appreciating area.

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

The property offers two separate SFR that are properly separated. Property is located in a very desirable area that will bring in high rents. There was also room for improvement in the homes that will add major value right away. Also each unit offers 2+ parking spots for renters.

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

Found on the MLS. It was a unique situation where the owner passed away and his children inherited the property. They were very open to offering credits and we were able to knock the price down significantly from our original asking.

How did you finance this deal?

Through partners.

How did you add value to the deal?

Each property gets a new roof. Opening up the lay out. And adding a bedroom and bathroom to the front house. Back house gets new flooring and paint as well as a new roof. Both kitchens upgraded.

What was the outcome?

In the process of completing rehab.

Lessons learned? Challenges?

Patience. Lots of patience. We made over 30 offers and toured about 90 properties in order to find the right one. 5 months total time looking. It was very difficult at times. San Diego is a red hot market right now. Any investor-worthy property had 8-15 other offers. We learned to get creative in our bidding and the power of persistence and believing in your ultimate goal.

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

Yes hit me up if you're interested!