1 Property with 3 separate units.... Adding a 4th door!

1 Reply

Investment Info:

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

Purchase price: $112,500
Cash invested: $20,000

.68 acre property with 3 separate units (3/1, 2/1 and a 1/1). Adding an additional unit below the 1/1 in a separate unfinished space.

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

It cash flows like a beast! Total investment will be about 139k and total rents will be $2600 after adding the 4th unit. Currently all 3 units are rented to long-term tenants at a total of $1950 so it cashflows immediately.

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

I found it through a wholesaler that contacted me on referral. I brought other investors in to buy some of the portfolio and negotiated a lower price on the unit I purchased.

How did you finance this deal?

Private money from a family member and rehabbed with my own capital.

How did you add value to the deal?

Plan on adding a 1/1 unit in a space that used to be a garage.

Lessons learned? Challenges?

Insurance is getting tricky in FL. If possible I need to get 4 point inspections on all properties prior to closing so I get the best policy for the best price available.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Initially just my contractor but I will work with a commercial lender to get the best financing I can on the refi.

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