We Bought this Duplex To Rehab and Rent and Hold and Refinance

[Barbara G.]

We bought this 2 Family Duplex for $72,000 and estimate about $25,000 in Renovations.  We are buying it and Renovating it for cash.  We intend to get in Renovated and Rent it and then Refinance it.  We are hoping it will appraise for $120,000 and the bank will give us 70% of the appraised value. Hopefully we will get a $84,000 mortgage and we will have laid out $97,00 and we will only have $13,000 in cash in.  

After we put our 10% down we discovered new water damage from clogged gutters.  The ceiling in the garage is water damaged and needs to be replaced. That is new damage we did not have before we put our 10% down.  We need 2 new kitchens and  2 baths and floor coverings and painting.  The 2 car garage needs a seperating  wall because the last owners removed the wall and it probably needs a supporting beam where the wall was removed.

Its a 2 bedroom one bath duplex with a garage for each tenant.  Its a C town and should rent at $900 or $950 a side.  It will cash flow $10,500 it each unit rents for $900  Hopefully this will work out as planned.  Lets's see if we can do this in 2 months, renovate it and get 2 tenants and refinance it.  That means we will have to carry it for at least 2 months without income.  Let us see how close we get to this plan.