Multi-family that had a 3x ROI in 10yrs

[Lindsey Jellig]

Investment Info:

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

Purchase price: $1,100,000
Sale price: $3,200,000

As a former co-landlord for a multifamily in Greenpoint, I persuaded my partner to not sell in 2010, and when they did sell in 2019, the building was worth triple its value. I went on to obtain her sales license, and to join Corcoran’s Park Slope office so that I can help others identify similar market opportunities, find great homes, and optimize their return on investment.

[Jaycee Greene]

Quote from @Lindsey Jellig:

Quote from @Jaycee Greene:

Quote from @Lindsey Jellig:

Investment Info:

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

Purchase price: $1,100,000
Sale price: $3,200,000

As a former co-landlord for a multifamily in Greenpoint, I persuaded my partner to not sell in 2010, and when they did sell in 2019, the building was worth triple its value. I went on to obtain her sales license, and to join Corcoran’s Park Slope office so that I can help others identify similar market opportunities, find great homes, and optimize their return on invstment.

Hi @Lindsey Jellig, welcome to the BP Forum! How did you calculate a 3x ROI? Did you have any NOI between 2010 and 2019?

 Hi Jaycee,

The NOI was nominal because the building was paid off from the previous generation family member owners. There were small bits of upkeep like getting a new boiler, resurfacing the fire escapes since rust is a liability there, and light renovations floor by floor as previous tenants moved out or passed away. Also slowly updated lead pipes, removed asbestus, and updated the stoop. Increased rent helped afford this in an area rapidly appreciating. Since we were under 6 units there was no rental increase cap.

@Lindsey Jellig The NOI has nothing to do with the mortgage payments. Those "small bits of upkeep" seem fairly significant. I suspect those cost north of $200k, am I right? This would cut into that "3x ROI"...