Duplex in wilmington De.

12 Replies

Investment Info:

Small multi-family (2-4 units) hard money loan investment.

Purchase price: $65,900
Cash invested: $60,300

Newly renovated duplex in Wilmington De.

What made you interested in investing in this type of deal?

Investment

How did you find this deal and how did you negotiate it?

My gf saw it on Zillow and thought I maybe interested for 55k. when I submitted my offer another person submitted an offer so I offered 65900 and got the property.

How did you finance this deal?

Hard money loan with Lima One Capital.

How did you add value to the deal?

I turned a 1 bedroom into a 2 bedroom by eliminating the dining room along with upgrading both apartments.

What was the outcome?

Its a cash generating Airbnb Duplex!

Lessons learned? Challenges?

Delaware contractors aren't aggressive or they are super expensive.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Lima One Capitol got the job done when it came to funding it..

Leon

That's great! I never thought that DE had a great AirBnB market. Wrong! Another thing you could potentially look at is housing for traveling nurses. Wilmington/Philadelphia has a very robust healthcare market. 


Good stuff @Leon B Buie ! What is the ARV on the property? Have you refinanced out yet to pay hard money lender back?

I’m also located in Wilmington and am trying to get a feel for how much rehabs are being appraised for. I’ve heard from some people that appraisals come in lower than expected within city limits. Would love to hear about your experience with this!

Hello @Leon B Buie , nice deal!  Could you share the details of your hard money loan, did you use hard money for the Rehab as well?  Also where in Wilmington is the property

Hello @James Masotti , you mentioned you have properties in Wilmington.  Do you have properties in any of the opportunity zones?  If so, I wanted to know how successful you have been with renting in these areas?   I have been looking to invest in DE after reading about the Downtown Development District and the 2028 development plans.  (I was born and raised in DE, I purchased my first home in Browntown (which I wished I would have kept :-( , but I didn't know about RE Investing then.

Thanks, 


Originally posted by @Natalie Moore :

Hello @Leon B Buie , nice deal!  Could you share the details of your hard money loan, did you use hard money for the Rehab as well?  Also where in Wilmington is the property

Hello @James Masotti, you mentioned you have properties in Wilmington.  Do you have properties in any of the opportunity zones?  If so, I wanted to know how successful you have been with renting in these areas?   I have been looking to invest in DE after reading about the Downtown Development District and the 2028 development plans.  (I was born and raised in DE, I purchased my first home in Browntown (which I wished I would have kept :-( , but I didn't know about RE Investing then.

Thanks, 


 I have 2 properties that fall just inside the DDD. I am actively looking to buy more there. 

@James Masotti @Natalie Moore - I've got a duplex in Wilm, in the hunt right now - I've been doing research about the DDD recently as I'm getting ready to work on picking up a second property, what are the advantages there? Seems like it's just an area that the municipality is targeting for growth/public works upgrades? I'm not seeing financial, etc. incentives to actually build there - did I miss something?

Hello @Gavin Davie  @James Masotti
Hi James, That is awesome you are investing in Downtown!  Some of those struggling areas really need an uplift, they use to be really nice.   

Hi Gavin, yes there are tax benefits, capital expense credits or grants, and other credits that they offer to draw investing in these areas.  There is a video on YouTube that explains it in more detail, its from 2015, but the plan is still in place.  It's not just in NCC, but in all 3 counties. I can't remember if we can post links on BP, but if you search YouTube you can use this code "GwLa9kDtZoA" (Title of the video is "Big Picture" presents Downtown Development District Grant Workshop).  You can also google "Wilminton's Downtown Development District map, zone or plan" and get more details.  Since Gavin invests in the area, you may want to connect with him.  Hope this info helps!

Happy Investing



@Natalie Moore - thanks for the info! That's a long video! I'll check it out - downtown wilmington def needs the uplift, I'm hoping to contribute to that, I walk it everyday on my lunch and just the amount of boarded up/distressed properties is awful.

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