All Forum Posts by: Ben Scott

Thank you! And no, I didn't paint myself. I hired out both the interior and exterior. The interior is 2400 sq ft and lots of ladder work on the exterior. I trusted the pros. HAHA.

Some investors I know use Kevo Rentals but I can't speak to their quality. 

Thanks! And I can refi in December since I just finished up the project and the deed was filed with the county in June. But based on comps and the sale of the duplex next door, I'm confident in my $250k appraisal estimate.

Hello! I just uploaded a Youtube video on how I used the BRRRR method to remodel a duplex in Oklahoma City. Any feedback or ways to improve would be appreciated.

Hey, @kyle hern. A partner and I bought a duplex near Linwood (near Drexel and NW 23rd) for $120k in Dec 2019. One unit rents for $500 and the other for $800. This was a FSBO that was poorly marketed though. There are deals out there though. I will admit that prices right now in OKC are higher than normal.

Hey Kyle, congrats on wanting to invest in our city! Anecdotally, many investors looking for cash flow opt to buy on the south side while investors looking for appreciation look on the north side. Then there are the communities by Tinker Air Force Base which attracts many high quality tenants. I'm a local agent and investor and would love to help answer any questions you have.

Investment Info:

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

Purchase price: $165,000
Cash invested: $44,000

This duplex has a lot of history with me. My aunt and uncle have owned this property since the mid-1990s. I used to mow the yard in college with my brother. My uncle had two tenants that had stayed 25+ years. But I said, should they ever leave and you want to sell, please let me know first.

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

The Gatewood area is an up-and-coming neighborhood, just north of the gentrified Plaza District and south of Oklahoma City University.

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

I negotiated a seller finance with the owners, who happened to be my aunt and uncle. They have several rentals and are looking to divest as they become vacant. I've always had my eye on this duplex though given the location.

How did you finance this deal?

Seller finance. I put $10k down and financed the remaining $155k on a 15 year note at 5.75 percent. My mortgage is $1287 per month.

How did you add value to the deal?

I did a complete remodel. This place was riddled with roach poop and moldy carpets. We put in nice LVP flooring, repainted all 2400 square feet. Painted the kitchen cabinets a bold navy blue and upgraded the hardware. Added dishwashers and ovens in both units. New sinks and fixtures. Painted the exterior siding and added gutter guards.

What was the outcome?

I rented the one bed/one bath unit for $795/month. I rented the 3 bed/1.5 bath for $1200 a month. My expenses are about $1600 with mortgage, insurance, taxes and water. I believe the home will appraise if/when I refinance to a 30 year note to at least $250k

Lessons learned? Challenges?

Covid 19 was a challenge, simply for a supply issue. I couldn't find dishwashers or ovens in stock. Paint was another challenge. I chose a high quality Sherwin Williams interior paint. But the drywall, riddled with years of smoke and other odors, soaked up the paint like a sponge. In hindsight, I'd have used a lower quality paint as a base and then finished up with the top quality paint.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I'm a licensed agent in Oklahoma and was able to organize the contracts myself.

Investment Info:

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

Purchase price: $165,000
Cash invested: $44,000

This duplex has a lot of history with me. My aunt and uncle have owned this property since the mid-1990s. I used to mow the yard in college with my brother. And every time I drove through the historic Gatewood neighborhood, I opined on this duplex's potential. My uncle had two tenants that had stayed 25+ years. But I said, should they ever leave and you want to sell, please let me know first.

We set up an owner finance agreement and I funded the rehab. Both tenants of the duplex were special needs and, suffice to say, the place was rough. Roaches and roach droppings were everywhere. But we added new floors, paint and did some major updates to drywall, electrical and plumbing. My biggest project to date. I plan to refinance this once I've owned it for 6 months and believe it will appraise close to $250k based on comps in the area.

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

The Gatewood area is an up-and-coming neighborhood, just north of the gentrified Plaza District and south of Oklahoma City University.

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

I negotiated a seller finance with the owners, who happened to be my aunt and uncle. They have several rentals and are looking to divest as they become vacant. I've always had my eye on this duplex though given the location.

How did you finance this deal?

Seller finance. I put $10k down and financed the remaining $155k on a 15 year note at 5.75 percent. My mortgage is $1287 per month.

How did you add value to the deal?

I did a complete remodel. This place was riddled with roach poop and moldy carpets. We put in nice LVP flooring, repainted all 2400 square feet. Painted the kitchen cabinets a bold navy blue and upgraded the hardware. Added dishwashers and ovens in both units. New sinks and fixtures. Painted the exterior siding and added gutter guards.

What was the outcome?

I rented the one bed/one bath unit for $795/month. I rented the 3 bed/1.5 bath for $1200 a month. My expenses are about $1600 with mortgage, insurance, taxes and water. I believe the home will appraise if/when I refinance to a 30 year note to at least $250k

Lessons learned? Challenges?

Covid 19 was a challenge, simply for a supply issue. I couldn't find dishwashers or ovens in stock. Paint was another challenge. I chose a high quality Sherwin Williams interior paint. But the drywall, riddled with years of smoke and other odors, soaked up the paint like a sponge. In hindsight, I'd have used a lower quality paint as a base and then finished up with the top quality paint.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I'm a licensed agent in Oklahoma and was able to organize the contracts myself.

I'm in Oklahoma City and have two duplexes. I pay for the water/sewer/trash on each because there is only one meter. Trying to decide who used more water than the other would be unneeded drama. I'd recommend estimating the costs of water/sewer/trash and building into the rent. 

Hey @Karis Reavis. I'm a local agent and an investor with a handful of doors spread out of OKC. I'd love to help you scout out a property in the OKC market when you're ready. Let me know if I can be of help!