Small Duplex close to KU Campus

[Zachary P Schneider]

Investment Info:

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

Purchase price: $155,000
Cash invested: $50,000

Duplex. Complete Renovation including new roof, wiring, plumbing, new flooring, doors, windows. Full kitchen and bathroom renovations in both units.

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

I am a big fan of the BRRRR Strategy. This property is in a great location just 1 block from campus in a very strong rental market. Units previously rented in the $600-$700 range.

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

I used a local real estate agent who told me about this property the day before it went on the market. I felt like the asking price was very reasonable considering the location of the property so I offered full asking price (will never do that again, but I'm glad we got this duplex)

How did you finance this deal?

Local Bank - no money down, using equity from previous BRRRR properties.

How did you add value to the deal?

Complete Renovation and raising rents.

Lessons learned? Challenges?

Need to do more thorough inspections and plan renovation budget more carefully. This property went between $15-$20k over budget.

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

The real estate agent I used has his own rental portfolio and a management company which oversees more than 100 units here in Lawrence.