3 Family Conversion
Investment Info:
Small multi-family (3 units) buy & hold investment in Philadelphia.
Purchase price: $45,000
Cash invested: $25,000 Down Payment Leveraging a Hard money loan for purchase and rehab.
Zoned for multi-family but the seller was using the property as a single-family.
This will be a conversion for a single-family into a 3 family dwelling.
Super excited for this one as the value add will be massive.
This project should be done in 3-4 months.
What made you interested in investing in this type of deal?
The lot is massive and I was able to get a great deal on the purchase.
How did you find this deal and how did you negotiate it?
MLS
How did you finance this deal?
This deal was financed with a hard money loan that required 15% down on the total loan amount with 2 points and a $1500 commitment fee.
How did you add value to the deal?
Adding value by converting this from a single-family dwelling into a 3 Family dwelling by right.
What was the outcome?
The project is still in process but the outcome should be a nice amount of equity with a huge chunk of net cashflow.
Lessons learned? Challenges?
The biggest take away is that there are tons of opportunities that sometimes are sitting right underneath our noses! This property was listed in the market for 105 days and could have been a good deal at even $10,000 above the asking price. Stay thirsty my friends!
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
I am a licensed realtor and I recommend myself. :-)
I've been an investor-friendly realtor since 2014 so I have 6 years of doing this.
AND I am also an investor myself.