Updated 16 days ago on . Most recent reply
5 unit multi-family flip project
Investment Info:
Large multi-family (5+ units) fix & flip investment.
Purchase price: $1,000,000
Cash invested: $150,000
purchased this distressed off market 5 unit near city park; worked with city to split the property into 5 new legal townhomes and plan to sell individually; plan b is to sell some of the units and keep other units as rentals. Huge rehab; getting permits from Denver was hard but this has been a good learning experience and whether we sell all the units now and/or keep some this will be a good asset for us.
What made you interested in investing in this type of deal?
it works multiple ways; as a flip or a buy/hold or a combination of the two.
How did you find this deal and how did you negotiate it?
found it off market. i drove by it to and from my gym. was finally able to convince the owner to sell it to me.
How did you finance this deal?
hard money and had a partner.
How did you add value to the deal?
i found it, analyzed and raised money to buy it. Also, I'm the agent so will sell it.
What was the outcome?
work in progress. one unit is scheduled to close on 10/1/25.
Lessons learned? Challenges?
doing a deal like this is a ton of work. getting permits from city was hard and added a lot of time/holding costs to the deal. then selling 5 units takes time and is 5x the work of selling a single family deal. Deals like this need a HUGE margin and the option to hold as rental or the risk is too great.
- Evan Rice