Thonotosassa - 8 unit deal

[Account Closed]

Investment Info:

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

Purchase price: $690,000
Cash invested: $280,000

Originally listed for $705,000 but was able to negotiate down to $690,000. (4 duplexes, next to each other) During the purchase this appraised for $780,000 so we locked up a deal with a massive amount of equity.

25% down + closing costs, insurance binding, inspections etc. = $200,000 up front to control the asset.
Rehab Budget = $80,000
Total estimated cash = $280,000
Total estimate time to stabilize the property = 9 - 12 months

Current Rents = $4,864 per month, $608 per unit. (under market rents, poor management, needs rehab)
Market Rents = $8,000 per month, $1,000 per unit + Monthly water fee

After rehabbed, stabilized, will do a cash-out refi, and pick up 10-30 unit deals.

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

this came up on MLS and was able to quickly identify that this was absentee owner, w/ poor management of the asset, and that the price should be higher. When walking the property it was clear that the property needed to be rehabbed to increase the rents.

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

MLS

How did you finance this deal?

25% down personal capital

How did you add value to the deal?

in progress

What was the outcome?

in progress