First property bought! Now what??

[Brandon Salisbury]

Hello everyone! My name is Brandon Salisbury from greater Cincinnati, specifically Northern Kentucky. I purchased my first investment property less than a week ago. I've learned many many lessons and I haven't even owned it for a week. I am seeking every bit of council I can find as I AM going to create a business that is sustainable, repeatable and successful. I need your help and advice! I purchased the "single family" property with the intent of doing a straight flip. However, this "3 bedroom, 2 bath" property was originally built as a duplex and converted to a single family. The layout of the house is very awkward as a single family and makes a lot more sense as a 2 family. Either renovation will come with challenges. As a single family, I would have to relocate a bathroom to have the 3rd bedroom be not so awkward along with completely updated hvac, major plumbing repairs, electric upgrades and cosmetics. If I were to convert back to a 2 family, the units would both be 1 bed, 1 bath and fetch $400-$500 per door/month. If I went the 2 family route, I would need to add a kitchen up stairs and make the plumbing repairs. I would still need to make my electric and hvac upgrades. One question I have is will I add the most value for eventual resale of a duplex by having separate electric and do I need to have separate hvac? Can I do one electric and build in to the price of each doors rent? Are window a/c-heat units an option? If I went with the duplex I would more than likely keep it, rent it and take an equity line out to purchase my next property. Or just straight flip and get out. The purchase price was $29,500. I have $20-$24k available for reno. The comps range from $60,000-$75,000. Which option will bring my best return or create the most passive income? The more I learn, the more I know I need to learn!! Thank you so much for your feedback and advice!!

[Wes Singleton]

I'm new to investing, but it seems to me like you will spend more money trying to convert it back to a duplex and adding a kitchen, meters, etc. As a duplex, you said it will fetch 800-1000 per month. In louisville, many 3/2 sfr's in decent areas can fetch 800-1000 per month easily. Plus with a SFR, you typically don't have to pay water, grass cutting, snow removal,and your vacancy factor is typically less. As far as an exit strategy, you will get better appreciation with a SFR and it will be easier to sell than a duplex. If it was already a duplex, then I would say leave it, but it sounds like it will cost more to convert back, and your cash flow won't be much different, with more expenses if you change it to a duplex. Just my opinion, there are investors on here much more experienced than I.