Small multi-family (2-4 units) buy & hold investment in Salt Lake City.
Purchase price: $895,000
Cash invested: $278,000
Duplex that is currently a 3 bedrooms & 1 bath. We are going to remodel the basements so that each unit will have 5 bedrooms & 2 bathrooms per side. Talking with my property manager he feels that we will get around $2750 to $3000 per side on rent.
What made you interested in investing in this type of deal?
We have the opportunity to remodel the base and add 2 more rooms and add 1 more bathroom.
How did you find this deal and how did you negotiate it?
My property Manager presented it to me and was able to get it under contract within 3 days a similar unit just down the street sold for $925000 with out adding the new bedrooms and bathroom.
How did you finance this deal?
Conventional loan got it locked in for 30 years at 3.451%
How did you add value to the deal?
By adding in the extra bedrooms and bathroom.
What was the outcome?
We just started the remodel last will update when completed
Lessons learned? Challenges?
You need to look at properties with different eyes and look for the opportunity to add value.
Lance, Thank you for sharing! Great to get current, hands on information! Please post the finish results.
Best of luck!
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