BRRRR - Durham Duplex

[Ashton Levarek]

Investment Info:

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

Purchase price: $125,000
Cash invested: $2,500

Contributors:
Jesse Marinez

Duplex purchased through whole saler for $105,000. Built $20,000 of rehab costs into the HUD purchase price. Rented each side for $750 ea and refinanced at HUD value ($125,000). Cashflows at $431/month.

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

Purchase Price vs After Repair Value and Rental estimates for that area

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

Through our property manager and local whole-saler. Negotiated price basically by showing the seller the ARV and why we could not purchase it at the price he wanted. I believe he came down 10k after that.

How did you finance this deal?

Cash reserves and partnered with private money.

How did you add value to the deal?

Added central AC, new paint, some flooring, bathroom and appliances. As well as added a shed to protect water heater instead of leaving water heaters in master closet.

What was the outcome?

Ended up leaving about $2500 in the deal due to unforeseen costs. Cashflows at $431/month.

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

Christopher Levarek - Partner and Investment Manager... couldn't do it without him.
Jesse Marinez - great property manager, absolutely clutch for long distance investors.

[Adam Ward]

Congrats!  Looks like you did a good job with the renovation and the deal structure as well.  How many bedrooms per unit?  What area of Durham?