New Construction Duplex

[Darrel Donohew]

Investment Info:

Small multi-family (2-4 units) other investment in Rogers.

Purchase price: $180,000
Cash invested: $30,000

Building a duplex 839 square feet on each side with one bedroom, one a half bathrooms, two car garage and a 400 square foot deck over the garage. 6.5 miles to the new global Wal-Mart HQ's being built and 0.9 miles to Downtown Rogers.

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

I saw the future plans for the area and found a lot at a very low purchase price that needed variance requests for setbacks, maximum lot coverage, etc.. I bought the lot with the intention of building and being a first in the Northeast area around Downtown Rogers.

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

Used another agent to represent me and we bought the lot from a church for 15K.

How did you finance this deal?

Used a cash out refinance on our first home to purchase.

How did you add value to the deal?

Built new and was the first to enter this area before road projects connected it to Downtown and Wal-Mart HQ's.

What was the outcome?

About to complete the project and I am looking to sell to gain initial capital for more projects.

Lessons learned? Challenges?

Water and sewer taps need to be researched before buying a lot, we had to go under a road to connect sewer taps which added unforeseen costs.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Peter Lester with Keller Williams did an excellent job. Daniel Vandiver with Arvest Bank funded the deal and was seamless to work with. I was the builder and any one of us would love to help you with your next project!