Buy and Hold Duplex Rehab

[Jake Lilly]

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $155,000
Cash invested: $32,000

This is a distressed 2 bed 1 bath duplex in an excellent location that was bought with a construction loan. The bank required 20% down, and will loan improvement costs as needed up to the difference between the current loan and 75% of the ARV. Bought for $155k. Estimated $35k improvement costs. ARV is $220k-$225k. Estimated rent from $1,000-$1,200/month. Playing with the idea of furnishing and renting to traveling nurses because of such close proximity to the hospital. Estimated Cash on Cash return is 16%, including holding 8% of rent for repairs, 8% for Capex, 8% for vacancy.

What made you interested in investing in this type of deal?

Location/ Chance to create equity immediately

How did you find this deal and how did you negotiate it?

Friend of a friend who wanted to get rid of the property

How did you finance this deal?

Construction loan with local bank

How did you add value to the deal?

In the process now

What was the outcome?

TBD

Lessons learned? Challenges?

In the process now