Townhome Duplex in Charlottesville

[Tom Fisher]

Investment Info:

Small multi-family (2-4 units) other investment in Charlottesville.

Purchase price: $135,000

Project is an upscale design/build 5,000 SF townhome duplex under construction near the University of Virginia. Land purchase of a 0.11 acre, R-2 lot was used as downpayment for a conventional mortgage. Initially, the back unit will be the Owners' home and the front unit will be a 5 bedroom 3.5 bath Air BnB or short term rental in compliance with City zoning for transient stay rentals. Project is also designed as a "net-zero" solar powered development.

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

As an architect, the opportunity to design and build is a natural progression after having completed a series of buy and hold fixer-uppers

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

The lot was found in the MLS and an offer was made 5% below asking, and accepted.

How did you finance this deal?

Conventional. After the land purchase, for cash, the design drawings were appraised and the selected builder was qualified by lender.

How did you add value to the deal?

Seeing the potential of an odd shaped lot and providing design skills.

What was the outcome?

Project is still under construction.

Lessons learned? Challenges?

Developing requires a great team.

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

Broker: First Heritage, Mike Bitrick
Real Estate Agent: Roger Voisinet, RE Max
Builder: Chris LeBlanc, NOLA Builds
Legal: Tucker Griffen Barnes
Insurance: Wyant Hunter, State Farm
Accounting: ProVision, Kyle Bauman