Gut renovations are a pain... BUT they could be worth the Hurt.

[Jorge P.]

Investment Info:

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

Purchase price: $790,000
Cash invested: $280,000
Sale price: $1,900,000

I purchase this property in a booming market (downtown Jersey city). The property was in livable condition but I had been las renovated 20 years ago.

I did a full gut renovation to this property (ripped down the studs, new plumbing , new electrical, new HVAC) & added a 20 x 20 extension on 3 floors. Adding an extra 1,100sf to the property (1 large kitchen, 2 new bedrooms, 1 large master bath & walk-in closet.)

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

The property was in a great location & had great bones.

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

MLS

How did you finance this deal?

Bank Financing

How did you add value to the deal?

I added 20 x 20 extension on 3 floors to the property. Fully renovated the exterior & interior.

What was the outcome?

The property was bought for $790k & it just appraised for $1.9M

Lessons learned? Challenges?

Get to know your building department inspectors & build a good rapport.