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Updated over 5 years ago on . Most recent reply
1st Duplex invested in Old Brooklyn area of Cleveland
Investment Info:
Small multi-family (2-4 units) buy & hold investment in Cleveland.
Purchase price: $62,000
Cash invested: $8,000
We bought this duplex from a wholesaler. it was listed at 68,500 and negotiated it down to 62k. We inherited a tenant in the down unit that didnt need any work. The up unit needs about 15k of work that we are currently working on to get it rent ready. It should be ready to go in about 6 weeks and we will cash flow around $200 per door after refinance. We used two private investors for a 6 % fee, balloon payment upon refinance. So, this was a no money down deal. We are splitting rehab costs with our partner, but it should be a perfect BRRRR and we should retrieve all of our capital on refi.
What made you interested in investing in this type of deal?
We started investing with a single family, and wanted to try the "Stack" method for more cashflow. I.E. single family, then duplex, then quad, etc....
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#4 All Forums Contributor
- Real Estate Broker
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Originally posted by @Jon Dittrich:
Investment Info:
Small multi-family (2-4 units) buy & hold investment in Cleveland.
Purchase price: $62,000
Cash invested: $8,000
We bought this duplex from a wholesaler. it was listed at 68,500 and negotiated it down to 62k. We inherited a tenant in the down unit that didnt need any work. The up unit needs about 15k of work that we are currently working on to get it rent ready. It should be ready to go in about 6 weeks and we will cash flow around $200 per door after refinance. We used two private investors for a 6 % fee, balloon payment upon refinance. So, this was a no money down deal. We are splitting rehab costs with our partner, but it should be a perfect BRRRR and we should retrieve all of our capital on refi.
What made you interested in investing in this type of deal?
We started investing with a single family, and wanted to try the "Stack" method for more cashflow. I.E. single family, then duplex, then quad, etc....
Sounds like you got yourself a damn good deal. Don't usually see duplexes in Old Brooklyn going for under $75k-$85k these days.