Updated about 6 years ago on .
All in... Mountain Ave Great Deal
Investment Info:
Small multi-family (2-4 units) buy & hold investment.
Purchase price: $50,000
Cash invested: $16,000
Sale price: $180,000
Bought and will finish rehab at the end of December. Thereafter renting out the main house and renting out an ADU in May. Manifesting my next deal for a 3 or 4 unit multi family.
What made you interested in investing in this type of deal?
Great neighborhood, great deal, great cash flow and cash on cash return. All in and enjoying it!
How did you find this deal and how did you negotiate it?
Two years and many conversations.
How did you finance this deal?
6G down seller financing. Private loan for 22000k 8% interest, for the rehab, to be payed in full by December 2020. 6G of my own money into the rehab as well.
How did you add value to the deal?
Full rehab from roof to ground. Plumbing, floors, kitchen, bath, curb side, doors, everything...
What was the outcome?
Rehab completion at the end of December. Rent the 4 bed 2 bath main house by the end of January for 1200 a month. Split the property and build ADU's. Rent one and live in one. Rent both ADU's by June 2020.
Lessons learned? Challenges?
Challenges: Plumbing had to be totally replaced and I didn’t anticipate the cost. Have to remind myself not to get emotionally attached.
Learned: Need to build a solid team.