Duplex - Buy & Hold & Renovation

[Elliot Rivera]

Investment Info:

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

Purchase price: $210,000
Cash invested: $40,000

Duplex in Gainesville, Buy & Hold Renovation

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

Duplex close to the University offered for sale for first time in 30 years. Large units and great location.

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

My realtor sent me, it was her listing. Property was listed at $240k but after reviewing the work that needed to be done and crunching the estimated rents we came to terms at $210k.

How did you finance this deal?

Conventional Financing.

How did you add value to the deal?

Renovated the larger units bathrooms and changed the fixtures. Painted all of the interior, cleaned up landscaping, added gutters to prevent siding damage.

What was the outcome?

Gross rent amounts are $2,650 now and after debt service/expenses the property cash flows very well. Winning project.

Lessons learned? Challenges?

This was the property where after completion we decided to begin project managing the subs versus using a GC. The GCs we have used are very good, however, we felt that we could manage the project faster with potential savings. As a firm we have had success doing this on the latest acquisitions.