Updated about 5 years ago on . Most recent reply
2 Family Renovation and Hold
Investment Info:
Small multi-family (2-4 units) buy & hold investment.
Purchase price: $37,000
Cash invested: $145,000
This was a complete gut remodel of a 2 family. We just leased the first of the 2 units. Upon leasing the second unit I will refinance and pull all cash out of the deal.
What made you interested in investing in this type of deal?
The purchase price was cheap in an area of major development.
How did you find this deal and how did you negotiate it?
An investor came to me and asked if I would partner on the deal and head up the renovations.
How did you finance this deal?
Cash
How did you add value to the deal?
New roof, windows, gutters, new wiring, plumbing, kitchens, baths, paint, flooring.
What was the outcome?
Finishing the reno, one unit leased, we will cash out refinance soon.
Lessons learned? Challenges?
The original box gutters gave us a run for our money. The cost and time these took to repair was large.