Not bad for a first-time multifamily investor! This borrower previously only flipped single-family homes. But he saw an unpassable opportunity in this 14-unit building in the Washington Park area of Chicago. The current rents are $600 for 1 bed and $750 for 2 beds. He is converting the 1 bedrooms to 2 bedrooms and will ask $1250 per month. He is converting the 2 bedrooms to 3 bedrooms and will ask $1400 per month when done.
All the apartments will be totally rehabbed with new kitchens, bathrooms, floors, electric, etc. This will be a cash-flow cow for him when he is done.
We were able to procure 70% of the purchase price and an additional $280K loan for rehabbing.
|$597,000 Loan Amount||1-Year Term (Interest-only)|