First Investment Property
Hello Bigger Pockets,
This is going to be my first real investment property where i will try to achieve cash flow and add value to the unit.
To start a small description of the duplex, there is a 1 Bedroom walk up Upper Unit and a 2 Bedroom main floor unit seperately metered. I purchased this for $250,000 in London Ontario. When we first saw this place it was being rented for $450 for the UPR Unit and $675 for the LWR unit. These rents are way below market value the current tennants have not had a rent increase since 2003! I would like this deal to cash flow at $500 and think i may even be able to get it to $700 a month.
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1 Bedroom Upper Unit:
We found out that the Owners brother was the upstairs tennant and was willing to move out before closing so we would receive vacant possesion of the UPR Unit. The person who lived upstairs was pretty dirty and the place will need some general cosmetic touchups. We also plan to add Laundry, Dishwasher, Re - Do the floors and stairs, and paint. After renovated we are looking to achieve a rent of $950 - $1050.
2 Bedroom Lower Unit
We will be assuming a tennant in this unit who has been paying a rent of $675 since 2003. The unit is in fairly good condition. I would like to add laundry and a dishwaser when I have a tennant turnover but considering that market rent for this unit is about $1200 - $1400 she is probably not going anywhere any time soon.
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One thing I am considering doing is renovating both units at the same time which would probably save me money on doing the process twice and make stuff easier on plumbers and electricians however the renovation would probably be to the point where I wouldnt be able to have anyone living in the units. I was thinking of offering cash for keys, or getting a building permit or renovating and applying for a rent increase. I will add some pictures of the before state of the UPR unit when we close on this deal on July 31st. Any input is appreciated as this is our first attempt at renovations and trying to add a property to our portfolio that cashflows!