Investment Info:
Small multi-family (2-4 units) buy & hold investment in Blue Island.
Purchase price: $139,500
Cash invested: $20,000
Brick 2-flat with wood floors and unfinished basement. We are intending to finish the basement and convert it to living space if the City allows it. We have also added a roof along with extensive tuckpointing.
What made you interested in investing in this type of deal?
This is a B area - working class, quite neighborhood with mostly single family homes. Solid renters and income.
How did you find this deal and how did you negotiate it?
MLS. Negotiated down the price based on repairs needed.
How did you finance this deal?
Conventional loan. Our next projects will be with hard money lenders. The property is worth 180k so there is about 40k equity.
How did you add value to the deal?
Structural repairs, updated wood floors, painting and landscaping.
What was the outcome?
Excellent renters with solid incomes.
Lessons learned? Challenges?
Want to find properties with more of a spread for equity.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
We worked with an agent.
