Live-in Rehab now cash-flowing duplex.
Investment Info:
Small multi-family (2-4 units) buy & hold investment.
Purchase price: $125,000
Cash invested: $25,000
Property was a complete rehab. The individual was losing to the bank and one of the tenants was into drugs and the other one did taxidermy in the living room. The was animal excrement everywhere from dogs being unattended in the house for long periods of time. Complete remodel including electrical and plumbing.
How did you find this deal and how did you negotiate it?
Found on local MLS. Offered slightly over asking to avoid scheduled open house and offer review.
How did you finance this deal?
Conventional loan.
How did you add value to the deal?
Ran comparables to determine ARV, then subtracted estimated repair costs.
What was the outcome?
Repairs ended up being more than I anticipated because there were a few surprises in the remodel, and I couldn't invest the time I wanted to get this done as quickly as I wanted. I still ended up with a great duplex that cash flows very well.
Lessons learned? Challenges?
I'm too busy to continue doing my own remodel work. It's important to stay in my lane and not try to do it all.
