Duplex renovation and AADU addition

[Joe Patton]

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $717,500
Cash invested: $180,000

I purchased a duplex here in Seattle in July and have been renovating both units while converting an unfinished basement into a livable space.

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

I was looking for a buy and hold property to renovate, increase rents and cashflow after my debt obligation. I found a great deal and closed three weeks later.

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

I found this property on Redfin and sent it to my broker who took it from there.

How did you finance this deal?

Bank loan to purchase the property with personal financing to cover down payment and renovation costs.

How did you add value to the deal?

I re-sided a substantial portion of the exterior, added heat pumps to all units, new windows and finished out the basement.

What was the outcome?

To be determined

Lessons learned? Challenges?

We had an extremely difficult tenant situation to deal with. Tenant had given one month notice to move out before we bought the property but did not honor the notice when time came to move out. I learned that landlords have very little liberties when it comes to dealing with difficult tenants especially during COVID pandemic. Not even threats to personal safety or a family member needing to move in allow for eviction.

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

Jon Wagher from Caliber Home Loans was an awesome person to have on my team. He was a trusted advisor, always available and cared a lot about making sure I got a good deal. Would highly recommend.