2x Cap Rate in Under 12 Months

[Philip PIckard]

Investment Info:

Small multi-family (2-4 units) hard money loan investment.

Purchase price: $339,000
Cash invested: $66,000
Sale price: $599,900

Acquired a 4-unit multifamily property using a private money loan to cover the down payment — zero out-of-pocket equity required at entry. Identified the property as located within a state-designated grant zone, qualifying for renovation funding specifically reserved for a select number of eligible areas.

Leveraged those state grants to fund renovations required to pass Section 8 inspection, keeping capital deployment minimal while forcing significant value. Personally oversaw the inspection process and successfully contracted the entire property under the Housing Choice Voucher (Section 8) program.

The result: rent is now paid directly by the government every month, at rates slightly above local market — eliminating collection risk entirely while increasing gross income. The improved NOI nearly doubled the cap rate value of the property, translating to a substantial jump in asset value in under a year.