Purchased a duplex in City Heights area of San Diego to fix and flip. But after remodeling, decided to hang on to it as a rental property. Both units are leased out with 1-year leases. The remodel was just under $90,000 and was top to bottom remodel of both units: new kitchens, bathrooms, flooring, some windows needed to be replaced, plumbing was updated, landscaping, and more.

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

I have been a flipper in San Diego for several years. Never hung on to properties as long term investments until getting involved with BP. I am looking to start holding on to investments long term to grow wealth for the long term.

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

This deal came from the MLS. I was able to find it the day it was listed. Made a cash offer and beat out a few others. Closed with a hard money loan.

How did you finance this deal?

I used a hard money lender that I have used many times. Was able to get it closed in about 10 days.

How did you add value to the deal?

Remodeled the entire property: new kitchens, bathrooms, flooring, painting interior and exterior, landscaping, new roof on back unit, opened up kitchen to living room in front unit.

What was the outcome?

I intended to purchase the property as a fix and flip, per my normal business. But during the remodel I started to really like the property and felt the area is improving and thought it would be a good hold. I was able to complete a convention refinance and get the hard money loan paid off. Brought my brother in law on as a small partner so I wouldn't have so much capital tied up in the deal.

Lessons learned? Challenges?

We probably would have not spent so much on the remodel if the end result was to rent the units. I think we could have probably gotten similar rents with doing a little less work. But the property turned out very nice and we are happy with the updated/upgraded systems of the house and should have limited capital expenditures upcoming for a significant amount of time.

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

Yes, the listing agent represented both sides on the purchase. A hard money lender on purchase, who is very easy to work with and I would highly recommend. And a mortgage lender, referral from the HML that did the purchase loan helped me on the refinance. The refi took a bit longer than expected which cost me money in holding costs, but he was a good guy and easy to work with as well.