Contractor Hacking....I’m married to the guy!

[Maria S.]

Investment Info:

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

Purchase price: $150,000

Cash invested: $30,000

Duplex within walking distance from KU Med. Purchased from a former landlord. My husband’s contracting company is rehabbing the project. He converted the one bedroom/unit to a two bedroom and added stackable W&D units in each unit.
Rents in the area for a 2/1 are going for $1175-1350...going to test at higher end then move towards a median rental price.

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

Location. Walking distance to a major university hospital.

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

Landlord called my husband to paint it but then he didn’t want to put any more money into this rental and sold to us. He agreed to sell it if we allowed him to keep his Jeep in the garage for 3 months

How did you finance this deal?

Conventional 30 year.
I did a Cash out Refi on our primary residence to put 20% down.
Husband’s Construction company has business lines of credit to fund the rehab. I hired his construction company to do the rehab. He in turn provides super itemized invoice to document labor and materials.

How did you add value to the deal?

Converted from one bedroom units to two bedroom units and added stackable W&Ds.

What was the outcome?

About to put on rental market. Will REFI next quarter ARV comps are $325,000

Lessons learned? Challenges?

100 year old stained glass windows well for $$$$

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

Flat Branch Mortgage