Updated almost 7 years ago on . Most recent reply
3 Unit Townhome Construction ($50k down - sold for $2.1Million)
Investment Info:
Small multi-family (2-4 units) other investment.
Purchase price: $480,000
Cash invested: $50,000
Sale price: $2,100,000
Purchased 2 on a lot residential property that was zoned R3. We got a construction loan for $1 million. Tore both properties down and built 3 brand new units ranging from 3 - 4 bedrooms.
What made you interested in investing in this type of deal?
Great location, good price and good economy.
How did you find this deal and how did you negotiate it?
A friend was living there and found a new property to buy.
How did you finance this deal?
Conventional loan for the property and then a construction loan for the construction process.
How did you add value to the deal?
By building brand new homes.
What was the outcome?
Great return on investment