Duplex Rehab, Rent, and Flip

[Lee Yoder]

Investment Info:

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

Purchase price: $89,000
Cash invested: $26,000
Sale price: $160,000

I purchased this duplex located in my hometown at the county auction. I used my HELOC and some of the profit from my first flip. I attempted to sell this property after completely rehabbing both units, but couldn't get the price I wanted. So, I rented both units. My tenants were great, but I don't enjoy being a landlord and my goal is to own larger multi family properties. After about 5 months, I sold to a local investor who owns about 50 units in this town. There were no realtors/brokers involved. I made a good profit and learned a little about being a landlord.

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

I wanted to flip another property, but I also wanted to dip my toes into multifamily. I knew if I couldn't sell this property after rehabbing it, I could rent it and get some experience landlording.

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

I found this at the county auction. I was the high bidder.

How did you finance this deal?

My personal savings/profit from my first flip and my HELOC on my personal residence.

How did you add value to the deal?

I spent $26,000 on the rehab and completely renovated by units.

What was the outcome?

I rented this property for about 5 months and then sold to a local investor. We made about $45,000 total on this deal.

Lessons learned? Challenges?

I learned that I do not enjoy being a landlord. I had great tenants that rarely bothered me and had no serious issues while renting, but I and my wife did not enjoy being responsible for our tenants. I plan to use professional property management for my future rentals. This is why I want to focus on larger multifamily properties.