All Forum Posts by: Sung Yang

Investment Info:

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

Purchase price: $120,000
Cash invested: $565,000

This is the third project of the year. We purchased an empty lot (5,120 sq ft) and are building a two-family unit from scratch. The lot offers a beautiful of the Hudson River. Each unit will be approximately 985 square feet, featuring three bedrooms and 1.5 bathrooms, with four designated parking spaces. This is a buy-and-hold. After the construction is completed, we believe the value of this home will be close to $ 800,000. We expect the rental income to be approximately $ 7,000 per month.

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

I have tried the heavy rehab and light cosmetic retouch project, but I always thought that if the lot is priced right, I'd rather build from scratch and avoid the painful and expensive renovation works. Especially here in the Westchester or Fairfield area, labor costs are extremely high.

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

Zillow and my builder, Westchester Modular Homes. It was for sale at $150,000, but the previous buyer was unable to secure the loan, so I made a cash offer, which was accepted.

How did you finance this deal?

Cash for now, we will finance it once completed.

How did you add value to the deal?

It is an empty lot where we are building a very nice two-family unit.

What was the outcome?

Work in progress.

Lessons learned? Challenges?

In some cases, building from scratch is often more financially sensible than rehabbing.
From the very beginning of my real estate investing: 1. I wanted to try the three ways: buy a good property that is in good shape, undervalued, and generating cash flow from the get-go. 2. I wanted to buy a rehab project, build my team, and give a second life to a beautiful building that deserves it. 3. I wanted to buy a vacant lot and build from scratch.

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

I worked with Sony Huy from Raveis, I do recommend her.

Quote from @Malorie Moore:

Sung,

That is amazing, congrats! I'm from Alabama and Hoover is a great location.

Thanks, Malorie, I think the south still offers very attractive markets. The only thing that makes me hesitate more is the tonadoes and hurricanes and the ever increasing insurance cost. I see that you are an agent, if you see a great multi family unit in a great school zone, please let me know. Thanks.

Quote from @Christopher Ray:

Congrats on the rehab, Hoover is a great area!

Thanks. Indeed, I already see notable appreciation since December 2024.

Yes, inventory, especially the good ones, is really low so this is a seller's market. There are a lot of Investors in New York and Connecticut bidding aggressively with cash. So to snatch a good deal you need to make a cash offer, which not only is the prefered method of payment by the sellers but it also saves a lot of time. I will also pay for the repair and once the property is fully renovated and ready to be rented out I will refi and cash out.

Investment Info:

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

Purchase price: $500,000
Cash invested: $700,000

This is a rehab project. The title shows that the property was originally built in 1900 as a two-family house, later converted into a single-family home. It is currently in very poor condition.

We are now fully rehabbing the property and restoring it to its original two-family layout. The scope of work includes electrical and plumbing upgrades, gutter replacement, water infiltration mitigation, interior and exterior painting, odor removal (due to animals), wall repairs, full renovation of bathrooms and kitchens, and structural reinforcement.

We estimate the total rehab cost to be approximately $200,000. The projected After Repair Value (ARV) is between $800,000 and $850,000. Once the two units are rented out, we plan to refinance and cash out based on the improved value.

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

We aimed to create value by rehabbing and restoring it to its original layout, which is a two-family unit. The house is in rough shape but can be beautiful after repair and cosmetic care. Yonkers is a great suburban market, just 30 minutes away from Manhattan, so rental demand is strong and stable over time and the appreciation is predictable.

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

I live in Connecticut and was looking to buy and hold an investment property within a two-hour driving radius. After analyzing a large amount of market data, I identified Yonkers as a promising area with strong potential.
To move forward, I connected with several top-rated real estate agents in Westchester County and spent considerable time researching listings, primarily through Zillow. We ultimately purchased this property slightly below the asking price by making a cash offer.

How did you finance this deal?

Cash.

How did you add value to the deal?

We are putting in $200,000 to renovate this house fully.

What was the outcome?

Work in progress.

Lessons learned? Challenges?

Rehabbing helps to create value. Westchester, NY, is a highly competitive market with numerous investors possessing substantial cash reserves.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $310,000
Cash invested: $95,000

This is our first real estate investment in the US. Hoover is a nice suburban area of Birmingham, Alabama. It offers great outdoor activities and highly rated public schools, making it a pleasant and convenient town to live in with family.

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

Some cities in Alabama are steadily growing; it is landlord-friendly, and the rental market is dynamic. The median price is still affordable.

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

I studied the market and read extensively about the Sunbelt regions, and I found that Hoover has many positive aspects. I traveled to Birmingham and met with an excellent agent who helped me purchase the house.

How did you finance this deal?

30% down payment and 70% fixed interest 30-year loan.

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

Mahek Virani is my agent in Hoover, AL. I recommend her. If you want to get in touch with her, let me know.