Found this deal through a wholesaler

1 Reply

Investment Info:

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

Purchase price: $113,000
Cash invested: $160,000

In Nov 2018 we purchased a 3/3 1,800 sqft house for a total cost of $180,000 with no mortgage.
We converted this house into a 4plex. We split the main buildings into 3- 1 bed 1 bath units. And we converted the garage into a studio unit.
We are currently renting all units out for $3,550 a month

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

Wholesaler

How did you finance this deal?

Loan

How did you add value to the deal?

Rent
2


Income  Unit 1: $900  Unit 2: $900  Unit 3: $900  Unit 4: $800  Shed: $50  Total Per Month: $3,550  Total Per Year: $ 42,600 Expenses  Property tax: $2,700  Insurance: $1,200  Repairs: $2,700  Management Fee: 8% = $3,408  New tenant every 2 years: $1,775  Vacancy: 4% = $1,704  Total per month: $1,123  Total per year: $14,610


Yearly Profit: $29,339

Return: 17.8% before taxes

What was the outcome?

Contractors: $37,214 Insurance: $600 Job Supplies: $12,968 Utilities: $1,104.02 Total cost of renovation: $51,886.18 Total money spent on project: $164,886 Estimated House Value: $200,000 Upside Equity: $35,114

Originally posted by @Nir Sheinbein :

Investment Info:

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

Purchase price: $113,000

Cash invested: $160,000

In Nov 2018 we purchased a 3/3 1,800 sqft house for a total cost of $180,000 with no mortgage.
We converted this house into a 4plex. We split the main buildings into 3- 1 bed 1 bath units. And we converted the garage into a studio unit.
We are currently renting all units out for $3,550 a month

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

Wholesaler

How did you finance this deal?

Loan

How did you add value to the deal?

Rent
2


Income  Unit 1: $900  Unit 2: $900  Unit 3: $900  Unit 4: $800  Shed: $50  Total Per Month: $3,550  Total Per Year: $ 42,600 Expenses  Property tax: $2,700  Insurance: $1,200  Repairs: $2,700  Management Fee: 8% = $3,408  New tenant every 2 years: $1,775  Vacancy: 4% = $1,704  Total per month: $1,123  Total per year: $14,610


Yearly Profit: $29,339

Return: 17.8% before taxes

What was the outcome?

Contractors: $37,214 Insurance: $600 Job Supplies: $12,968 Utilities: $1,104.02 Total cost of renovation: $51,886.18 Total money spent on project: $164,886 Estimated House Value: $200,000 Upside Equity: $35,114

 that's a pretty cool deal.. 4 separate entrances  4 kitchens etc.. true separated living or apartments.. I know this was quite the thing in the old Victorian houses 

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