SFH conversion to Duplex or Flip

[Brian Warren]

I put a bid in on a SFH that I know has a lot of potential but would like some feedback on the direction I should go with it. It’s an older home but most in my market are. It’s an estate deal so it’s being sold “as is” As is needs roof now or within 2 years best case Back porch needs replaced Minor things inside, but will add up This house has a lot of added bonuses that I can explain if relevant Purchase price $85,000 20% down will finance the remainder Rehab will vary based on strategy Bank also offering a financing option to give loan based on after rehab value. New type of loan through local lender Option 1 minor repairs and rent for $1300 Rehab costs minimal Roof $6,000 Porch $2500 Interior spruce up $3000-$5000 Option 2 easy split to Duplex Rents top $1000-$1100 Bottom $800-$1000 has workshop space and commercial style garage attached Again rehab minimal $27,500 Roof $6000 Porch $2500 Interior spruce $3000-$5000 Update existing 2nd kitchen in basement $5000 Take away spiral staircase and close up floor $2000 Egress a basement window $3000 ? Zoning or legal to split??????? Option 3 fix and flip put more into rehab ARV should be $140,000-$150,000 Rehab costs would be probably 40,000 Would update kitchen Some flooring Some paneling in basement Probably replace windows A litttle landscaping Along with roof porch etc I’m leaning towards Duplex option But I have heard that that could decrease value? This is a good solid bones property that would make a good long term rental in a decent area that should attract quality long term renters Any feedback is welcome Also anything that I am missing this is not my first rental but I am still new at this and have never done a lot of rehab. I have a great team, I have run other businesses and have developed a team around me that will do most of my manual labor Thank you