Investment Info:

Small multi-family (2-4 units) buy & hold investment in Norman.

Purchase price: $60,400
Cash invested: $60,000

One side was a former drug house known by address by the police. The other had a tenant who was a nearly perfect resident-except for being a hoarder. The area is rapidly revitalizing and the potential was there! We did a full remodel of the drug side, moved the resident over with a trial period for keeping his side clean (he later agreed to get a regular cleaning person), and fully remodeled the other side.

What made you interested in investing in this type of deal?

This was our first multifamily with great cash flow and BRRRR potential.

How did you find this deal and how did you negotiate it?

MLS and got a lower price than even the low list price because of the tenant situation.

How did you finance this deal?

Our own cash.

How did you add value to the deal?

We turned it from a scary place into a gorgeous home with virtually everything new/updated.

What was the outcome?

We refinanced and have it rented. It appraised for $144,000 and rents for $600/side and cashflows $500/month.

Lessons learned? Challenges?

This was our first time hiring out a lot of the rehab (we normally do almost all of our own remodeling). We went WAY over budget due to a few unexpected repairs that I underestimated, having never hired them out before! Now I have a much more accurate estimate for repairs, but I learned to estimate hiring someone will cost 3-4 times more than doing it yourself.