Success Story: First rehab on a duplex is done

[Susan Tan]

I live over 2,000+ miles away from the duplex in OH. I depended heavily on my property manager to make this rehab project a success. I like out-of-state investing, particularly in OH, because a lot of multifamily buildings up to 4plexes meet the 1% rule.

According to property manager who managed all the rehab work, my rental number 2 (the duplex) has final remaining bills of $12k for all repairs, labor, materials for a total of ~$18k in repairs to be paid in cash. Mint.com notification will complain with email notification on my high business spending. Even with such high spending out of pocket, the numbers still work: CAP rate is 10.23%, Cash-on-cash is 10.39%, and it exceeds the 1% rule at 1.26%. So, this deal looks good to me even with a 25% conventional mortgage at 15-yr fixed rate, 4.25% interest rate.

The open house for applicants happened today; over 12+ pre-qualified applicants are scheduled to tour the 2bed/1bath unit in different time slots. The 1bed/1bath unit already has a tenant who will move in September 2020. I expect that both units will be occupied by Sept 2020.

Before pics: https://photos.app.goo.gl/3HDu...
After pics: https://photos.app.goo.gl/NRFD...