Finally rented out my newly renovated duplex!

3 Replies

Bought it last year for $300k, needed $150k to renovate. I raised $200k from a foreign investor to pay for renovations and put some money back in my pocket. In exchange, the investor gets a fixed 5% Interest Only return until we sell, where he would receive a 40% share of the proceeds above $500k. Currently doing about $7,000/month in rent. Expenses are about $3,400/month, including the interest payment to my investor, a $400/month general maintenance reserve and a 2% capex replacement reserve based on the total renovated cost of the property.

http://tinyurl.com/mmkez6c

I know its not the kind of cap rates that a lot of you like, but it's pretty great compared to what else is in the miami market.

Looks great! How long did it take to get rented? 

Also, how did you find the foreign investor who was willing to put up the money for the renovations?

Originally posted by @Sebastien B.:

Bought it last year for $300k, needed $150k to renovate. I raised $200k from a foreign investor to pay for renovations and put some money back in my pocket. In exchange, the investor gets a fixed 5% Interest Only return until we sell, where he would receive a 40% share of the proceeds above $500k. Currently doing about $7,000/month in rent. Expenses are about $3,400/month, including the interest payment to my investor, a $400/month general maintenance reserve and a 2% capex replacement reserve based on the total renovated cost of the property.

http://tinyurl.com/mmkez6c

I know its not the kind of cap rates that a lot of you like, but it's pretty great compared to what else is in the miami market.

 Reno looks great. Well done ;)

How much are you clearing every month for yourself?

Thanks

Medium list n sell logo designEngelo Rumora, List'n Sell Realty | [email protected] | 419 740 6999 | https://agentscomefirst.com/ | Podcast Guest on Show #89

Foreign investor was a friend of a friend connection.

It took us 1 week to rent the back unit, and we rent the front unit on a monthly basis.

Clearing about $3k/month after everything. At my cost of $250k, its about a 14% return without any official mortgage usage. I'd like to refi the house in the coming months and get most of my equity out for the next project.

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