Investment Info:

Large multi-family (5+ units) buy & hold investment.

Purchase price: $301,000
Cash invested: $30,000

This property changed our investing model. At first we looked for properties that needed little to no work. We Purchased this one, renovated it and refinanced it. WE only stuck about 4-5 k per unit into it. 3 years later we did a cash our refinance. It appraised at 585,000! We took the cash our and purchased another building. This is a 6 unit.

What made you interested in investing in this type of deal?

It was a little bit bigger and we saw the upside potential.

How did you finance this deal?

We had the owner hold a 10% second note until we refinanced it.

How did you add value to the deal?

Refinishes all the hardwood floors, painted, updated the kitchens.

Lessons learned? Challenges?

We learned all about the power of increasing the NOI on this project.