Updated about 6 years ago on .
Boarded Up Duplex 400 DOM
Investment Info:
Small multi-family (2-4 units) buy & hold investment.
Purchase price: $200,000
Cash invested: $60,000
Boarded up duplex in Dallas.
What made you interested in investing in this type of deal?
400 DOM. MF in a hot neighborhood in Dallas. I also found out through codes that even though the city rezoned this property as commercial, because none of the previous owners ever pulled commercial permits the property remained residential. This was the reason every investor passed on the deal.
How did you find this deal and how did you negotiate it?
Drove the neighborhood, saw the home boarded up and started asking questions.
How did you finance this deal?
Hard Money
How did you add value to the deal?
Did most of the work myself.
What was the outcome?
Spent 5 months gutting it. Found renters for 1 side and hacked it for 2 years. Now it's fully rented.
Lessons learned? Challenges?
Had a lose budget and should have had a 3rd party manage it for me. Im learning to be better with numbers and I learned labor gets expensive quickly. Thought if I threw a bunch of day laborers at this project it would speed up the rehab...nope. Just caused me to overspend on the demo.
When I went to refinance my banks appraiser used the 3 worst comps in the entire area. It came in like $75K lower and all my cash stayed in the deal. Almost sent me on a downhill spiral.
