Duplex Rehab Portfolio

[Ben S.]

Investment Info:

Large multi-family (5+ units) fix & flip investment.

Purchase price: $25,000
Cash invested: $300,000
Sale price: $715,000

We acquired several abandoned and functionally obsolete duplex buildings from our city's land bank authority. We carefully rehabbed these buildings (occasionally going over budget) but stuck with it and managed to complete the project, lease up all of the units, and divest at a healthy upside which allowed us to segue our returns into larger investments.

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

We acquired these assets as vacant buildings with significant redevelopment upside.

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

These properties were purchased from the local land bank authority.

How did you finance this deal?

Personal equity + recourse construction financing.

How did you add value to the deal?

We brought new life back to these buildings, creating new living spaces for our tenants and enhancing the quality of life for the neighborhood as a whole.

What was the outcome?

We divested of these assets a significant gain, allowing us to leverage our equity into larger multifamily investments.

Lessons learned? Challenges?

Never buy and install appliances until you have tenants ready to move in! People steal them!