I made an introduction post 3 years ago about a duplex I purchased and planned on renovating. Well.... I finally finished haha. What a wild 3 years. I purchased this duplex in 2019 and began working in May of 2020 when the occupying tenants leases expired. Covid threw a wrench in my plans as material prices skyrocketed. I was able to finish one side in 2021 that my wife and I currently occupy. With material prices still elevated I delayed the rest of the project for a year and a half while focusing almost solely on scaling my construction company. I resumed working in mid 2022 with my spare time and a goal of being finished before the end of 2023.

The original duplex was a 1 bed 1 bath on each side and originally built in 1907. I completely gutted the house leaving only 2 original external walls as required by the city as the duplex status was grandfathered in and leaving a portion of the original structure was required. Everything else is brand new and brought up to current IBC standards. New plumbing, wiring/electrical, service panel, main water line, floor joists, sidewalks... I even raised the roof and added bonus room trusses. The duplex now stands as a 2 bed 2 bath on each side. I added a flat top roof deck and built three ground level decks for the entry doors. I did most everything by myself with a decent bit of help from my dad. It's quite literally a brand new house and I'm proud of what I've accomplished although it took a lot longer than what I initially anticipated.

Now for the numbers

Purchase price: $145,000
Cash invested: $22,000.12 (15% down at 3.99%)
Mortgage/insurance/taxes payment: $902/month

Renovations: $76,000

Total invested: $98,000

Housing prices in my area have soared since 2019. I have yet to receive an official appraisal but had a real estate agent tell me to expect an appraisal value in the low to mid $400,000 range based on similar properties sold. The duplex sits in a prime location that is walking distance to downtown, a local park, a bus stop, and the local university. Expected monthly rents are $2500-2700/month combined.

My next step will be either an HEL or HELOC to purchase another property my wife and I will move into in order to rent both sides of this duplex. With interest rates and property values so high it's hard to find anything that would cash flow outright so the next purchase will be something that has a lot of value add potential and might be an outright flip although my goals are to buy and hold (BRRRR). My wife has 11 years experience in hospitality working for a resort and thus we will be STR'ing this property as the market here is hot and we anticipate a much higher return than LTR. I will continue to do general contracting and she will develop the STR business.

I've networked with a few other investors in town... half tell me I'd be stupid not to sell the property and half say I'd be stupid if I did. As of now I'm firm on holding this property, the location is hard to beat, and I'm looking at a HELOC over an HEL as that gives me the ability to utilize the equity in the home while also allowing me to be patient with the next purchase. The only rush I feel is my desire to scale and to rent out the side I'm currently occupying. However I'm always open to advice and opinions.

Here's a couple before and after pictures