Independence Duplex converting from 2/1 to 4/2 on each side

[Jake Boyer]

Investment Info:

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

Purchase price: $183,750
Cash invested: $183,750

Duplex in Independence MO purchased with cash with my business partner and best friend in the KC market, where I'm originally from. He is the boots on the ground and will manage the day to day local stuff, while I'll do what I can from a distance on the management side. Bought as 2/1's but we're looking to make both sides 4/2's. ARV as two 4/2 units should be close to 250k and rents should be 1300-1500. Just closed after Christmas 2021, so I'll update as things progress!

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

Multifamily deal in my home town, but still out of state for me. Cash flow potential is much higher in MO and properties are much cheaper. Easy one to get into and either rent out right away or do some minor updates to the upstairs and add value through additional bedrooms in the basement.

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

Found it on market through an agent in KC area

How did you finance this deal?

Cash out of pocket

How did you add value to the deal?

Adding two bedrooms and a bathroom to the basement on each side of the Duplex to take it from 2/1's up to 4/2's

What was the outcome?

In progress

Lessons learned? Challenges?

I'm used to doing a lot of the work myself and this will be my first LTR out of state (have STR's out of state, but total different model) where I'm not the one swinging a hammer. Will be very interesting to see how things turn out!

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Worked with Patrick Woods in the KC Area and he was great! Good eye for the potential and easy to work with overall. I'd recommend him to other investors in the area.