BRRRR duplex in Cincinnati with a zoning change!

[Joseph Cornwell]

Investment Info:

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

Purchase price: $115,000
Cash invested: $200,000

Side by side duplex in Deer Park, Ohio. The left side was rezoned for residential use, the right side was already under residential zoning. The building will be fully renovated, adding 3 bedrooms on the left side, and 1 more bedroom on the right side. I will then Refi out my cash and put it on a conventional note. Should cash flow about $600/mo after refinancing!

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

It had set on the market for several months due to half of the building being zoned commercial mixed use.

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

A friend had sent me the listing because he knew I liked to buy in Deer Park.

How did you finance this deal?

I purchased with my cash and will use a private lender on the renovation funds.

How did you add value to the deal?

I had the zoning changed for half the building to allow for residential use. I am fully renovating the building and adding more bedrooms.

What was the outcome?

It should appraise around 300k ARV. I will refi my cash out and it should cash flow about $600/mo after being rented out.

Lessons learned? Challenges?

The zoning change process was interesting, it was not overly complicated but required some leg work. It was my first time working through it. The rehab should be rather straight forward.

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

Just myself as my own agent/GC.