6 Unit Value Add Deal in Reno

[Jake Andronico]

I asked ChatGPT to re-paint the outside of these 6 units I just helped my clients purchase.

They bought a 1984 build duplex with 2 bed 1.5 bath 1,064 sq ft units w/ in-unit laundry and backyards for $425K.

And, a 4 plex with a killer 2 bed 1 bath brick house and a triplex on the same parcel built in 1984 with 3 bed 1.5 bath, 1,248 sq ft townhome style units for $725K…

5.6 cap at entry with a clear path to over a 7 cap.

In today’s environment, that’s very rare.

And here’s the part most people miss:

This wasn’t on Zillow, Realtor, or Redfin.

Not on LoopNet.

Not on Crexi.

You had to know where to look.

And you had to know how to analyze it fast.

There were multiple interested parties immediately after a significant price reduction, signaling the sellers wanted out.

But my client had something different:

Clarity.

Using our Address Income analysis, we ran 3 separate cash-flow scenarios based on their exact financing terms for each property.

3 clear rental and expense projections w/ clear rental data.

Their rate.

Their down payment.

Their amortization.

They were confident enough to close on both properties simultaneously.

That’s how you can win consistently with small multifamily.

These value-add multifamily deals don’t show up every day.

But when they do, you need to know quickly:

• What's the true NOI?

• What happens at stabilized rents?

• What does it look like being conservative?

• What’s the realistic exit cap/comp sensitivity?

What multifamily deals are you seeing in your area?