Duplex Gut Renovation

[Mackenzie Grate]

Investment Info:

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

Purchase price: $205,000
Cash invested: $150,000

This is a full gut reno purchased off market. The renovation has been slow, but it is coming along. We intend to set it up for a long term rental in one unit and a short term rental in the other unit... although we may have to pivot to two long term rentals because of the town's changing STR laws.

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

I like the idea of a blend of categories. I don't want all my investments to be just one type. This also had multiple exit strategies.

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

Off market from one of the tenants who was moving out.

How did you finance this deal?

Hard money loan.

How did you add value to the deal?

Gut renovation.

What was the outcome?

It's still in process but will be done early spring.

Lessons learned? Challenges?

Major challenge continues to be contractors. The costs were getting to high with one and they weren't on the job enough to supervise their subcontractors so I had to switch to a new one mid project.

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

Me! :) I was the realtor and represented myself.