Two Family at the Jersey Shore $150k Renovation Using 203k Loan

[Cody Z.]

Investment Info:

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

Purchase price: $370,000
Cash invested: $150,000

203K Rehab of Detached Two Family House in Belmar, NJ.

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

Wanted to house hack on the first deal and grew up in the area so this was a no brainer.

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

Off of the MLS. Went on the market and the price was reduced by $100k within a week so immediately went to go see it and made an offer on it. Was outbid and the other buyers eventually fell through but the Seller liked me during the showing so she chose my offer.

How did you finance this deal?

Traditional 203k Loan.

How did you add value to the deal?

Gutted both units and rebuilt them from the foundation up. Once completed, I fully furnished both units to turn them into short-term rentals.

What was the outcome?

Units have become a unicorn for me and now gross upwards of $45k+ from MDW to LDW. Winter months cash flow $200 a month so operating costs are covered.

Lessons learned? Challenges?

Too many to list but feel free to ask specifics lol.

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

Yes, my lender was great.