My Worst Deal Ever (…That I’d Still Do Again, Maybe...)

[Chase Calhoun]

The Capitol View Five-Duplex Saga

Most investors love telling their best-deal stories.
This is not one of those.

This is the deal that punched me in the mouth, emptied my bank account more times than I want to admit, and taught me more than any “wins” ever have.

The Deal

Five duplexes (10 units) in Capitol View, Little Rock, AR.
Bought mid-2021. Finally completed late 2023.

Purchase price: $350,000
– $70,000 per duplex
– $35,000 per unit
All but one unit were vacant and looked rough from the outside. Once we opened walls, we realized “rough” was optimistic. They needed full guts to studs, reframing, everything.

How It Started

We bought them using a guidance line—purchase + initial rehab. Easy enough.
Then the neighborhood started neighborhood-ing.

Squatters. Problem tenants across the street. A couple of police visits.
The bank didn’t like the “vibe.”

When It Went Off the Rails

The bank did a surprise site visit and panicked.

They:
• Refused to extend the construction period
• Forced full P&I payments as if every dollar was drawn
• Declared the loan “fully funded” even though we obviously had work left

So I had to move the entire project to a new bank and take five separate construction loans, one per duplex. Meanwhile, rehab costs kept rising like a bad stock chart.

The Budget Blowout

Initial est.: $80,000 per duplex
Actual: $807,000 total
– $161,404 per duplex
– $80,702 per unit

Every dollar over budget came from me—no extra bank funds. Stress level: Olympic.

The 2.5-Year Grind

What should’ve been a quick stabilization turned into a 30-month, “is this thing ever going to end?” marathon.

But here’s the part you don’t hear often:
I finished it. And the entire pocket of the neighborhood changed because of it.

Where It Ended Up

Today they rent for $10,170/month (~$1,017 per unit).
They cash flow well.
I still own them.

And since finishing, I built two new houses + two new duplexes (six additional units) in that same micro-neighborhood.

What was once a rough block is now fully stabilized and improved.

If I had to sell them today?

I’d basically break even. A lot of equity is still tied up thanks to the massive rehab costs.

But the long game? It’s already paying off—and will continue to for decades.

What Went Wrong

• Neighborhood issues
• Construction period extension denied
• Rehab 2× over budget
• 2.5-year timeline
• Stress, doubt, and constant cash injections

What Went Right

• I didn’t quit
• We completely revitalized a neglected pocket
• Cash flow is strong
• I gained multi-unit, heavy-rehab experience that now makes everything else easier
• The area is now a feeder for future BTR and infill deals

My Takeaway

Everything that could go wrong did.
But finishing the job created lasting value, for the neighborhood, for my portfolio, and for my own skill set.