Updated over 5 years ago on . Most recent reply
1st Full Rehab (a duplex!)
Investment Info:
Small multi-family (2-4 units) buy & hold investment in Springfield.
Purchase price: $45,000
95K appraised (after rehab)
We originally bought this as a flip, but liked the ROI so much, we decided to keep it.
What made you interested in investing in this type of deal?
The price was right, and the remodel looked do-able. The house had good bones.
How did you find this deal and how did you negotiate it?
We found it on the MLS, surprisingly. There weren't many pictures, and you couldn't even tell it was a duplex. Our realtor hadn't even known about it.
How did you finance this deal?
A local credit union (in-house loan)
How did you add value to the deal?
My husband did a lot of the work himself and contracted out a few things. The rehab itself added a lot of value.
What was the outcome?
A success! It was a big project to tackle as a first rehab, but we learned a lot and plan to hang on to this one for a while.
Lessons learned? Challenges?
Because my husband did a lot of the work while maintaining his full-time W2 job, there were some difficulties with time. He had to sacrifice a lot of it, especially with the rehab on the first side. Once one side was done, it was pretty self-sufficient and time wasn't as big of a deal (although we were still pushing to meet our own deadlines) . In retrospect, we should've contracted out more. It ate into some of the profits we would've had, but we are happy with the overall results.
