Flipping Apartments for sweet gains
Investment Info:
Large multi-family (5+ units) fix & flip investment in Seattle.
Purchase price: $1,150,000
Cash invested: $272,000
Sale price: $1,700,000
Purchased an undervalued property, performed a light renovation, sold the property.
What made you interested in investing in this type of deal?
The property was undervalued and had huge upside with zoning.
How did you find this deal and how did you negotiate it?
The property was listed on commercial listing site. This was a multiple offer situation, we lost to the highest bidder. The highest bidder backed out, and seller came back to us. We negotiated the price down and the seller accepted.
How did you finance this deal?
We financed the property 20% down with Alaska Federal Credit union
How did you add value to the deal?
We completed a light renovation and repositioned the asset.
What was the outcome?
We liquidated the asset after holding for a bit over a year.
Lessons learned? Challenges?
Always stick to your offer. If someone else wins it’s not the end of the world. The only thing that matters are your numbers.
