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Updated about 3 years ago,

User Stats

18
Posts
14
Votes
Collin Blackburn
  • Lender
  • Virginia Beach, VA
14
Votes |
18
Posts

Richmond VA Buy and Hold Quadplex zoned as 4 SFH

Collin Blackburn
  • Lender
  • Virginia Beach, VA
Posted

Investment Info:

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

Purchase price: $590,000
Cash invested: $140,000
Sale price: $820,000

Four homes zoned SF that we purchased from the same buyer like it was a quadplex.

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

Cash flow and appreciation of the neighborhood.

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

We found this deal on the MLS and negotiated a lower price because we wanted to purchase all four SFHs.

How did you finance this deal?

Conventional Investment Loan

How did you add value to the deal?

We did a lot of cosmetic work on the interiors, put up fences to separate the yards, and put in back yard patios.

What was the outcome?

We collected cash flow on the property for a few years and did improvements to the property when the leases turned over so we could raise rents. Money continued to flow into the neighborhood and our property values went up until we decided to sell.

Lessons learned? Challenges?

We underestimated what these properties were going to rent for by a couple hundred dollars. We took the listing agent's opinion and did some due diligence but not enough. We didn't get the numbers we expected. Fortunately, time solves almost all problems in real estate and the rent went up to what we expected after a year or two.

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