Subdivide and build a 3 family on new lot

[Anthony Marin]

Investment Info:

Large multi-family (5+ units) buy & hold investment in Newark.

Purchase price: $186,000
Cash invested: $110,000

We bought at the county auction. We renovated the entire building and filled vacancies. Then we applied to subdivide to build a 3 family on new lot created.

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

The large lot

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

We saw it on the county auction list. We went to the auction and outbid everyone.

How did you finance this deal?

We paid cash then refinanced it once it was stabilized.

How did you add value to the deal?

Renovating the building initially then we added more equity once we subdivided it.

What was the outcome?

The outcome will be a brand new 3 family property along with a 3 unit mixed use property.

Lessons learned? Challenges?

Being that this was our first venture into development, we didn't realize how long it would take and much it actually cost to get finalized plans before we can actually begin building.