Small multi-family (2-4 units) buy & hold investment in Reno.
Purchase price: $270,000
Cash invested: $50,000
Complete remodel of 4-plex in improving area of Reno, NV-3 partners
Utilized a construction loan and partner's HELOC funds for materials & labor payments
Refinance upcoming in December 2020-lets see how our pro-forma worked out in this challenging COVID remodel!
What made you interested in investing in this type of deal?
I'd been actively pursing a small multi family in Reno Nevada and was ready for a challenge-my first major remodel. Specifically the influx of new companies in Reno & its continued improvement projects made a rental in this area a no brainer
How did you find this deal and how did you negotiate it?
Our real estate agent sent us this deal. We didn't negotiate much off the list price-at 300k it was one of the cheapest in Reno
How did you finance this deal?
A combination of construction loan, our own private capital, & HELOC's were used
How did you add value to the deal?
Nothing we could do to this property wouldn't add value-the interior was in complete disrepair. Luckily, they bones and roof were in good form. A complete interior remodel was completed by our contractors, including new framing, drywall, windows, heating & cooling, paint, and bathroom and kitchen remodels.
What was the outcome?
Let's see! We are in the process of refinancing out of our construction loan.
@April Vogt I can only imagine the possibilities running through you and your partners heads once COVID hit but I'm glad you all pulled through. I hope you conduct a follow up post once the refinance is complete I look forward to seeing how it all turned out. Great stuff 👍 Continue to be great.
@Ismael Adrian Arrizon we definitely will have some updates! I didn't quite have time to finish the post as thoroughly as I wanted but we definitely experienced some hiccups including a shady tenant & the eviction moratorium and supply chain issues to name a few!
@April Vogt Geez, quite hectic... My first property has been a complete learning experience from the escrow process to renovating, I've had to keep reassuring myself that this is the right move for myself, my business partner & my family. I love hearing the trials and tribulations of others in the real estate investing space. I'm starting to notice this solution based mentality among fellow aspiring investors. So to that, I applaud you in this specific project. I'm sure what ever the outcome, you will find a solution to any and all other bumps in the road. Thank you for your time and have a great day April.
Hi April and Ismael,
I enjoyed following this thread and look forward to hearing about the end result with the refi and proforma!
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