First BRRRR; Duplex in Detroit’s West Village
I’m am currently looking to acquire my first duplex property. Here’s the scenario I’m looking at and wondering what the input of more experienced investors is on it:
- 2 units built in 1913.
- $110,000 - purchase price; seller has agreed to carry the note until rehab and resale/refi has happened.
- $45,000 repair estimate for roof, front porch, back decks, plumbing and electrical, kitchen, and bathrooms.
- $65,000 Private money to finance repairs, cover closing, and have “uh-oh” money in the bank to fall back on.
- Comps are in the $260,000 - $480,000 range.
- The Area is right near downtown Detroit, which has MGM Casino, a bunch of businesses that are attracting young professionals whom would rather rent than own, the river walk, Belle Isle (anyone from Detroit understands Belle Isle’s significance), and the bridge to Canada.
- The neighborhood doesn’t look too bad, but it is Detroit.
My ultimate goal is to refi, pay off the seller and my private money, & be able to keep the asset. But, If that’s not possible I’m willing to sell to make some quick cash to put into my next deal. Is it possible to refi when your credit isn’t cream of the crop? Because this is a MF asset, should the bank care more about the assets performance? Would you do this deal? Is there any info I left out that you’d need to know prior to making a final decision?
I am no expert and I'll be the first to admit it. This will be my first buy & hold, first BRRRR, first transaction that I'm completely in charge of. I have assigned contracts and to be honest I don't really like the whole wholesaling side of it. I want to generate long term Cashflow.
I’m looking for any and all advice from experienced investors so that I can one day be on your levels.
Thanks in advance,
Duncan Hayes