Triplex to duplex conversion in long term hold

[Justin Capps]

Investment Info:

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

Purchase price: $60,000
Cash invested: $7,000

Old home on west side that at some point was chopped up into 3 units. At the time of purchase, 1 tenant was evicted from the downstairs efficiency apartment. The 2 other tenanted units were both long term. The initial money I spent at the property was cleaning up the property and repairs in the efficiency unit. We converted the efficency unit into a 3rd bedroom for the growing family downstairs, turning the home into a duplex. Rent was increased as it took them from a 2 bedroom to a 3 bedroom. The property has been neglected for years. I felt it was a better short term decision to increase rent and make it a duplex rather than deal with another vacancy and rehab(they were planning on moving out).