Investment Info:
Small multi-family (2-4 units) commercial investment investment in Denver.
Purchase price: $2,000,000
Cash invested: $1,500,000
Bought 4 full duplexes out of foreclosure. Rented, rehabbed and rented and ultimately sold.
This was over a period of 9 years. Invested $30,000 to 40,000 for fix up and remodel. Sold for
prices starting at $330,00 to $475,000 at the end of ownership.
What made you interested in investing in this type of deal?
It looked like a good opportunity to rent and remodel for profit.
How did you find this deal and how did you negotiate it?
A commercial broker had it listed and I was the broker for myself.
How did you finance this deal?
Easy, since there was so much equity. It was through a bank.
How did you add value to the deal?
Remodel with very nice finishes, finished basement in some cases took walls. In the last few changed the 3 bedrooms up to 2 and made a great master and bath. This happened over time so we had appreciation going as well.
What was the outcome?
It worked as planned. Though we were ahead of the market in that neighborhood. Had it been a little later we could have made
more on the final sale.
Lessons learned? Challenges?
I need to think about it. I'm sure there are a number of lessons.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
no,not really
