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