Fix and Flip 2 Duplexes

[Brad Stegall]

Investment Info:

Small multi-family (2-4 units) fix & flip investment in Peoria Heights.

Purchase price: $140,000
Cash invested: $8,000
Sale price: $195,000

I bought two empty duplexes right next to each other that had been vacant for a year. I marketed them. Got 3 units full and was able to sell.

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

I knew that I could add value by leasing out the units.

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

A friend of mine called me because he knew I was an investor. He happened to be friends with the out of market owners. I negotiated the price down because they had been empty for an entire year. I knew it was because their property manager just wasn't doing a good job.

How did you finance this deal?

I bought it for cash with lines of credit from other properties that I have good equity positions on.

How did you add value to the deal?

I bought new appliances for all 4 units and got 3 of the 4 units rented out.

What was the outcome?

I got one unit rented out the first month and the second came quick too. the rental income almost covered all of the money that i had to put into it for appliances and repairs. I ended up clearing just shy of $50K.

Lessons learned? Challenges?

The biggest challenge was that we were going into the winter and that isn't a good time to rent places in this area. A lesson i learned was the power of networking. The person that I ended up selling them to was someone that I met at a charity event that told me he wanted to get into real estate investing. Now he has a great property and I have a new friend too!