4 Bed 2 bath Row home converted to a duplex
Small multi-family (2-4 units) buy & hold investment in Baltimore.
Purchase price: $72,500
Cash invested: $35,000
Sale price: $115,000
This was a distressed property set up as 2 units the appraiser used the comps in area that were out dated as an duplex to go off of and got a low appraisal of $115,000.00! if i would of left as a single family the comps were 145 K to 160 K - lessen learned on this one, lumps and bumps of investing , the rent for single family are around $1150.00 to $1450.00 Section 8 - but decided to do the duplex to get $800 & $900 each unit for maximum ROI.
What made you interested in investing in this type of deal?
Just looking for 2 streams of income on one property
How did you find this deal and how did you negotiate it?
How did you finance this deal?
line of credit then refinanced to a 30 yr fixed rate
How did you add value to the deal?
Rehabbed house with all rental quality fixtures, and re did all plumbing, electric, roof, windows, doors, floors, heat, hot water heaters
What was the outcome?
all went well!!
Lessons learned? Challenges?
Look at all comps for duplexes in area do not use single family identical structures and expect the same appraisal for a similar building