Is it Amityville or my next rental to HOLD for a few...

[Tyron McDaniel]

What a lovely duplex right... said no one ever!!!

Scooped up this doozy of a property recently and we are about to get construction underway on this one that I anticipate holding for a while! Believe it or not this property is in much better condition than this photo indicates at least structurally anyway, it sits on a 15,000 sq ft lot and comes with a BONUS 2/1 house on the back of the lot! 

Funny enough many investors passed on this deal and understandably so... After meditating on it for a minute or two or week, LOL, I actually came up with a pretty solid plan for this property a part of which I believe most investors simply didn't see. 

Let me explain, the above duplex as it is currently is 1,488 sq ft with one unit downstairs and the other upstairs! Based on size alone, each unit should at least be 2 bedroom 1 bath units which are common for 744 sq ft. This photo is of the rear but on the front there are (2) entry doors for the bottom level unit and the upstairs unit is on the side. So my plan is to convert the bottom level into (2) 1 bedroom efficiency units and the upstairs into a 2 bedroom unit. I believe this configuration will take my projected rental income on this duplex from $1300 to $2100 and when I add in the income from the 2/1 free standing home also on the lot, we get up to an estimated $2950 a month! NIIIIICE....

I know you're now wondering what are the other numbers...

I paid $28,500 for it which is basically land value so the way I see it I get (2) structures FREE! I project my total project rehab costs to come in around $75k before I begin to factor in excess materials we have on-hand from other projects that will get used in this home as well as excess labor from our projects when we are running ahead of schedule. 

Even cooler is we already have an appraisal for $150k based solely on renovating the duplex so I suppose there is another $50-60k in unrealized equity based on renovating the single family! So we are in essence somewhere close to a $200k ARV on this one potentially!