Finally Did It; Purchased First Rental Duplex.

[Nathan Patterson]

Well this was a long time coming, but I finally did it.  In October of 2023 I was able to close on my first property.  I will include numbers below.  What happened after that....an immediate eviction.  Luckily it wasn't too painful, my PM approached the tenant let them know we were starting the eviction process.  A week later, she left under her own will.  Since then it has been a long process of renovations, dealing with lack of communication from contractors and repairs in the unit that is currently rented.  Need less to say the previous owner did not take care of the property & let it fall into disarray.  We are almost done with the reno on the empty unit & I am hoping to get it rented by the beginning of February.  Details on the reno to follow along with photos. 

Purchase price $104,500

Interest: 7.625% with 25% down payment

Property details: 2 units, 1 2 bed 2 bath and 1 2 bed 1 bath.  Built in 1960 in the South East of the USA.  Came with 2 inherited tenants, one is still renting & is current on rent.  

Issues with the property at closing: low water pressure, aging roof, several lights not working, dated interior, water stain under HVAC unit, damaged decking (burn hole & rotting boards), old appliances, holes in drywall

Anticipated cost to renovate:  $22500 (includes roof, repiping from old galvanized pipes, renovation of currently empty unit)  The currently occupied unit is TBD on cost, the tenant has been in place for the past 3 years.   Since it is the smaller unit I am anticipating $6,500. 

Anticipated rent once renovated: $1,650/MO

Anticipated COC: 8.3%

Thanks for reading, excited to post the next update on the renovation with photos!  If anyone has tips or things to watch out for, please provide.