Multi-family that had a 3x ROI in 10yrs
Investor · New York NY, USA · Member since 2025 · 25 posts · 8 votes
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.
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"...
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?
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.
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"...
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"...
Hi Jaycee,
Thanks for clarifying - as far as operating the building and the rent rates we were taking in it was practically break even around 2009 since they haven't been raised in almost 12 years but grew to >50% profits from <20% over 9 years. The ROI actualized was not through operation but mainly through holding and selling via neighborhood appreciation. The massive appreciation was partly due to rezoning incentives along the water for developers as well as popular TV shows taking place there right before the rezone.
Does that help answer your question?
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"...
Hi Jaycee,
Thanks for clarifying - as far as operating the building and the rent rates we were taking in it was practically break even around 2009 since they haven't been raised in almost 12 years but grew to >50% profits from <20% over 9 years. The ROI actualized was not through operation but mainly through holding and selling via neighborhood appreciation. The massive appreciation was partly due to rezoning incentives along the water for developers as well as popular TV shows taking place there right before the rezone.
Does that help answer your question?
@Lindsey Jellig So, "you caught lightning in a bottle"!? Good for you and your partner...
Lol. It was a by chance lucky situation that I am using my learnings and AI to make a model to recreate to share with others who also want to catch lightning in a bottle. At least as a base for experts to do the rest of the work from their hard earned experience!