Triplex-Gem in the rough

[Annette Weiss]

Investment Info:

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

Purchase price: $70,000
Cash invested: $15,000
Sale price: $155,000

This was a great ROI, starting as a buy and hold, netting $1500/mthly. Net profit on sale: $93,000.

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

One property Tax, 3 doors

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

Through an investor friend

How did you finance this deal?

Business line of Credit

How did you add value to the deal?

Converted to Triplex from duplex, new flooring throughout, appliances/windows/toilets/vanities

What was the outcome?

full occupancy, excellent cash flow

Lessons learned? Challenges?

Zoning enforcement! We were going to be forced to convert the triplex back to a SFH after it being a multi family for over 30 years, due to newly inducted city board members who were unable to obtain proof of permits for changes made from any of the several prior owners between the 1980-1990's. Sold before the enforcement was effective.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Myself!