Real Estate Deal Analysis & Advice

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Elliot Rivera
  • Rental Property Investor
  • Fort Lauderdale, FL
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25
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Quad - Purchase, Renovation & Results Summary

Elliot Rivera
  • Rental Property Investor
  • Fort Lauderdale, FL
Posted Aug 9 2019, 08:14

Investment Info:

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

Purchase price: $209,000
Cash invested: $80,000

Distressed quad purchased in up and coming neighborhood in Gainesville, FL. Renovation included new roof, windows, exterior paint, landscaping, gutters, flooring, interior paint, light fixtures, switches, kitchen remodel, bathroom remodel, washer/dryer and window coverings. In-force rents were between $550-650/month. Achieved market rents of $850-900/month per unit post reno. 15.5% cash on cash. 60 day reno timeline.

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

Previous experience, we have several multi-families in this market and the numbers worked on the projection.

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

Realtor we worked with presented this property. Negotiated based on deferred maintenance, current rents and comparables. Asking price was $229k after some back and forth deal closed at $209k.

How did you finance this deal?

Conventional financing.

How did you add value to the deal?

Property rent rolls were significantly under market due to deferred maintenance. Plan was to renovate units cosmetically top to bottom and bring rents to market.

What was the outcome?

Month to month tenants accepted rental increase after witnessing owner investment in property (new roof, windows and paint was completed within 20 days of ownership). Vacant unit was renovated (see images) and rented within 30 days.

Lessons learned? Challenges?

Continue to expand your teams. You can never have enough handymen, electricians, carpenters in your rolodex. Project timelines can be extended if your go to service guy is booked a few weeks. Time is money!

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

Graciela "Dada" McGlynn is a great realtor in the North Central Florida area

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