2669 N Palmer - East Milwaukee Buy/Hold turned Fix and Flip by Rada Duvall

[Rada Duvall]

Investment Info:

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

Purchase price: $120,000
Sale price: $251,000

This beautiful brick duplex was purchased in the summer of 2023 for $120,000 and initially was a buy/hold, but my partners and I decided to flip it and reinvest the money elsewhere. The mostly cosmetic renovation cost was about $35,000 which included refinishing HW FL in both units, extensive painting on the interior and some exterior porches, brand new SS appliances in each unit, exterior tuckpointing updated electrical, and some minor carpentry and landscaping. It sold for $251,000 Jan 2024. The HVAC and water heaters as well as the roof were in great condition already as well as the kitchens. We added appliances and created an eat-in kitchen next to the existing galley kitchens which already had granite counters and modern fixtures. When I listed it to sell, I included photos of old door knobs, lead glass windows, crown moldings etc which is what I look for in an investment property in Milwaukee, the old world charm with contemporary kitchen upgrades sets the unit apart from other rentals, because of this and the size of these units 1800 SQFT each, we were able to increase the rents significantly. The purchase price was very attractive, the repair and renovation was pretty fast because one unit was vacant, so we were collecting rent the entire time of ownership. This was a fun flip and a great property for the new owner's portfolio. The time to invest in Milwaukee is now. You do have to keep your eye open everyday for an opportunity like this. And then call your realtor to put an offer in!!

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

I am familiar with this type of property and the neighborhood as an investor and the numbers worked, needed minimal work for a good profit.

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

We found this deal online, the MLS, then my contractor was driving thru the neighborhood, the seller's agent was there. We inquired and walked thru and wrote the offer. It couldn't have been on the market for more than a day or two. The price was right and the utilities were newer and in great condition, that was very appealing. I am a realtor and I happened to know the owner.

How did you finance this deal?

Hard money lender

How did you add value to the deal?

Cosmetic Light Renovation, brightened it up with white paint, refinished the floors and stained coco, light carpentry, exterior fascia, treads on the stairs, and brand new SS appliances in the kitchen.

What was the outcome?

Well this was a great deal from the get go, low maintenance, light renovation, made a profit. Rinse and Repeat!

Lessons learned? Challenges?

Some of the surrounding neighbors do not maintain their properties as well, but great investors recognize a good deal and have vision of where the market is heading based on location and market growth year over year.

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

I was the agent! Sure anyone can contact me for more information.