SFH split into 2-units

[Susan Elliott]

Investment Info:

Single-family residence buy & hold investment in The Dalles.

Purchase price: $271,500
Cash invested: $17,000

We have split this SFH into 2 units (2br/1ba and 1br/1ba) and are living in the smaller unit to fulfill our owner-occupancy financing. We placed a kitchen in the smaller unit and sealed off the stairway to make it two full units. In one year we'll move out and have the bottom unit rented for a great cashflow in a tricky market. Excited to replicate this strategy in this uniquely zoned area of town and with the new permitting rules coming out soon to make ADUs much more friendly for investors.

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

This is in a great market that has seen lots of appreciation, but can be tricky to make rental numbers work at current higher prices.

How did you add value to the deal?

We turned this SFH into a duplex, essentially, adding a full other unit and approximately 30-50K in equity.