Accidental "Treehouse" in Durham NC

[Richard Mercado]

Investment Info:

Small multi-family (2-4 units) fix & flip investment in Durham.

Purchase price: $136,000
Cash invested: $35,195
Sale price: $274,335

This Duplex was purchased at the tail end of 2019 with one unit remodeled and vacant. Located in a flood zone, the property was ultimately destroyed by a large 100' tall tree which crashed down onto the roof during a storm, practically dissecting both units. After paying Loss of Rents for a year, the insurance company finally settled considering it a total loss. Between the insurance payout and the sale of the damaged property we were able to net $103,140 on this one. Originally intended as a Buy & Hold this ended being an accidental flip. Lesson learned: Don't buy in a flood zone unless you have great insurance and are willing to deal with a lot of headaches!