Case Study

346 Fairfax, Norfolk
346 Fairfax Avenue, Norfolk, Virginia 23507, United States

Multi Family

Property Type

August 2025

Acquisition Date

Holding

Exit Date

Project Overview

REIF ran the renovation unit by unit on bridge financing, and hard costs came in at $94,855 against a $95,000 budget. The scope brought heating, cooling, plumbing and electrical up to standard, updated every kitchen and bathroom in all three units, cleared the overgrown lot and added two off-street parking spaces. The building refinanced into a 30-year fixed loan in June 2026, and all three units were leased on 12-month terms by September 1, 2026.

The Challenge and  What We Did

The Challenge

  • Systems that had stopped working: the air conditioning was down in all three units, the gas was off at every meter, and one water heater dated to 1999
  • Electrical and safety gaps common in a building this age, including open splices and missing GFCI protection and smoke detectors
  • Structural wear in the basement, with under-supported floor joists, old wood-destroying insect activity and past heat damage to the framing
  • Exterior and site work on a 1902 house in a historic district: chimney, brick, roof, windows and an overgrown yard

What We Did

  • Bought at a price the finished building could carry, with bridge financing that funded the work
  • Brought heating, cooling, plumbing and electrical up to standard and updated every kitchen and bathroom in all three units
  • Cleared the overgrown trees, finished the backyard and added two off-street parking spaces
  • Refinanced out of the bridge loan into a 30-year fixed rate once the work was done
  • Leased all three units on 12-month leases, managed in house

Property Data

The building came to us tired rather than broken. The bones were sound for 1902, but the mechanical systems were out of service and the wiring, plumbing and basement framing showed every one of its 120-plus years. We kept the character that makes a Ghent address worth paying for and put the money into what tenants and lenders care about: working systems, safety, and updated kitchens and bathrooms in every unit. The refinance replaced short-term bridge debt with a fixed-rate loan, and the rents cover the new payment with room to spare.

Detail

Information

Acquisition Price
$585,000
Cash Returned via Refi

None

Net Equity in Deal
$209,535
Annual NOI

$59,400

Annual Cash Flow

$15,300

Cash-on-Cash Yield

7.3%

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