Buy & Hold - Renovation of Distressed Quad

[Elliot Rivera]

Investment Info:

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

Purchase price: $220,000
Cash invested: $70,000

Distressed quad, purchased to renovate and bring rents up to market rates. Renovations ongoing. Will update post to show completion accordingly.

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

These are the types of deals our firm seeks. Absentee landlords or properties where deferred maintenance is apparent.

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

We work with a group of realtors in the area who we have done multiple deals with and are well aware of our investment criteria.

How did you finance this deal?

Conventional financing.

How did you add value to the deal?

Exterior upgrades include: new roof, siding, screens, landscaping, paint. Interior upgrades: new flooring, kitchen and bathroom renovations, paint, fixtures throughout, lighting, appliances (as needed).

What was the outcome?

Renovation for this property is ongoing as current tenants turnover. We have applied this formula on multiple deals already so we are confident in projections.

Lessons learned? Challenges?

Always be conservative and account for uncertainty. Covid has presented a number of challenges to landlords and it is important to be cognizant of the impact to processes, people and bottom line.

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

I have had a great experience with Dada Mcglynn (ReMax) and Alan at Advisors Mortgage Group.