Walla Walla Duplex Conversion
Investment Info:
Small multi-family (2-4 units) buy & hold investment in Walla Walla.
Purchase price: $115,000
Contributors:
Sean Wilkinson
I found this duplex in late 2019 but discarded it due to the initial asking price. A few months later I received a call from the owner letting me know they had lowered their asking price and were very motivated to sell. Still lacking experience (and confidence) to tackle an extensive project like this on my own, I reached out to a local investor with who I had built a relationship over the past year. He ended up funding and managing the deal while allowing me to work and learn the entire BRRRR process. I negotiated the price, helped manage the rehab, and gained knowledge in construction all while getting paid a finder's fee. This project is still ongoing but has turned out to be a near-perfect BRRRR approaching the refinance stage.
What made you interested in investing in this type of deal?
As I learned more about the BRRRR strategy, I started to look for a small multifamily project I could partner on in order to learn the process.
How did you find this deal and how did you negotiate it?
I found this deal on Craigslist, I negotiated directly with the seller down from $170k to $115k.
How did you finance this deal?
I didn't have the capital or experience for this deal, so I brought it to a local investor who took it over while allowing me to learn the entire process.
How did you add value to the deal?
This was a major rehab project. We ended up taking this from a duplex with a basement to a triplex. We added a bathroom and kitchen in the basement on one side creating a 1/1. Upstairs was completely refurbished into a brand new 1/1. The other side is under construction right now, it will be a 3/1 when finished.
What was the outcome?
Now a triplex, two units are filled with Section 8 tenants, with plans to fill the third unit the same way. This project is approaching the refinance phase and should cashflow very well.
Lessons learned? Challenges?
My biggest lesson on this deal was the value of education and partnerships. Progress through a partnership is better than plateauing because you refuse to share a deal. I gained years worth of knowledge and a great partnership all through bringing this deal to a more experienced investor.
