Investment Info:
Large multi-family (5+ units) buy & hold investment in Miami.
Purchase price: $180,000
Cash invested: $175,000
Unit #1 is a one bedroom, one bathroom
Unit #2 is a four bedroom, one and a half bathroom
Unit #3 is a four bedroom, one and a half bathroom
Unit #4 is a two bedroom, one bathroom
Unit #5 is a two bedroom, one bathroom
Two storage containers in back of property also rented out
Fenced in yard in back of property rented out to Granite Fabrication Contractor
What made you interested in investing in this type of deal?
Long term hold and had large upside potential
How did you find this deal and how did you negotiate it?
My tile guy inherited this property and needed to sell so he brought it to my attention.
He told me to make him an offer so I told him I can pay him cash but only had so much available.
He agreed and the rest is history.
How did you finance this deal?
I paid him 150,000 cash up front and agreed to paid him 5,000 per month for six months for a total purchase price of 180,000
I then went out and got a private money loan for 175,000 for repairs.
How did you add value to the deal?
I completely renovated the property over the next year from top to bottom
the property is completed now and all rented out.
What was the outcome?
The property appraised for 1,500,000.00 so I gained over a million dollars in equity for a years worth or my time to renovate,
not bad for this deal.
Lessons learned? Challenges?
Large project and spent most of a year working on it and not on other projects, would have been a lot better to sub more work out and do two of these bad boys at the same time to double up.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
No agent on this one.
