Duplex Townhouse Renovation

[Jeffery Wilen]

Investment Info:

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

Purchase price: $56,800
Cash invested: $78,000

130 year old, 2 unit townhouse needed total renovation. Interior was completely gut and rebuilt. Re-configured stair to a legal rise run.All new HVAC, plumbing and electrical systems were installed. Walls and attic had no insulation. Ground floor was changed from combination of crawlspace and concrete slab floor to insulated concrete slab floor. Joists for 2nd story floor were jacked up to remove a 3" sag. Siding, windows, doors, patio, and porch were replaced.

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

Property location is well suited for short term vacation rental. By re-configuring the interior layout we could greatly enhance livability.

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

We found the property on MLS. Seller was motivated because of permitting issues and lack of funds to complete.

How did you finance this deal?

All cash property purchase, private money for remodel costs. Refinanced upon completion.

How did you add value to the deal?

Re-configuring the interior layout was critical to enhancing the value. Modernization of all the plumbing, electrical and HVAC systems was another big value add.

What was the outcome?

Appraisal of the property for refinancing was $245,000.

Lessons learned? Challenges?

Have a complete scope of work. Clear communication with contractors.
Biggest challenge was being able to develop reconfiguration plan with the extensive demo requirements.