MultiFamily in Beautiful North Park
Investment Info:
Small multi-family (2-4 units) fix & flip investment.
Purchase price: $1,044,000
Cash invested: $210,000
Incredible opportunity! I bought this with my brother as a pocket listing and the homes are in North Park (A highly desirable area in San Diego comparable to West Hollywood). This project has been my biggest headache so far... Mostly because I learned the golden rule, DON'T DO BUSINESS WITH FAMILY. This property has the potential to build 15 units on and currently has 2 homes and a soon-to-be converted garage.
What made you interested in investing in this type of deal?
The location, opportunity for development, and the thought of growth with my brother in the same manner that I always imagined
How did you find this deal and how did you negotiate it?
Pocket Listing and I was the agent on the transaction. It was an "as-is" purchase and needed about $120k (So we thought)
How did you finance this deal?
FHA Loan
How did you add value to the deal?
Fully gutted and renovated the front home and converted it from a 2/1 to a 3/2 with all brand new everything!
What was the outcome?
Now I currently have it listed for sale for $1,599,000 and have a good amount of interest. Whether or not we will sell is up to the outcome of whether or not I can buy my brother out of the deal.
Lessons learned? Challenges?
That golden rule... I've accidentally enabled my brother into believing that he can invest with me, not work, and make an impressive ROI. This job required a fair amount of work that we all agreed on in writing and unfortunately, I'm the only one holding that promise. I have solely funded every aspect of the home with the exception of $33k that he brought for acquisition and closing costs.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
I will definitely recommend myself on this one lol
- Christopher Burgos