1st Property Rehab

[Delroy Watson]

Investment Info:

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

Purchase price: $475,000
Cash invested: $25,000

2 complete units with an unfinished basement. 2 and half car garage. Basement will be converted into a ADU.

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

Two reasons:
1. I wanted to challenge myself by acquiring a property that need rehab. This is because i am interested in obtaining my GC license to kick start my own business.
2. The area, Portage Park Chicago, is an up and coming area with great rental metrics due.

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

Consistent real estate platform (zenlist, zillow, realtor, etc) search.

How did you finance this deal?

FHA loan

How did you add value to the deal?

1. Rehab of both units.
2. Conversion of base to ADU
3. Added Gate to access half parking spot.

What was the outcome?

Available unit was rented above market value.

Lessons learned? Challenges?

1. Ensure budget includes vacancies.
2. Create scope of work before project begins to manage material cost.
3. Vet realtors carefully.
4. Shop around for great deals.