Value Has Been Added

Our first real value add deal took place at the end of last year. My partner and I were able to find a off market property from a out of state investor looking to get rid of the duplex. One side was vacant and the other side had been there for several years. The first side I walked in was the vacant unit. It was a 3 bedroom 2 bath house with a 35 foot garage. When I noticed the garage, I knew that we were going to buy it for the asking price at 140K. I was going to split the garage in half and make a full bedroom out of the other half. When I looked at the other unit, I noticed that the job had already been done so I knew it could work. We were able to turn what was originally a 3 bed 2 bath into a 4 bed 2 bath. Here are the details:

Purchase Price: 140K

Rehab: 15K

ARV: 200K

Gross Monthly Income- 2,088

Our plan is to first buy a lot more of these exact duplexes! For this duplex we would like to hold it for the next 5 years and then refinance and pull money out and put it as down payment for a larger multi family.