BRRRR on a Monster Duplex in Dayton Ohio

[David Roe]

Investment Info:

Small multi-family (2-4 units) hard money loan investment in Dayton.

Purchase price: $30,000
Cash invested: $50,000

Very Large 4/2 Duplex with 1800 sqft per side. House was occupied by a hoarder that left everything. 9 tuns of junk later we took the house down to bare wood floors, some new drywall, new kitchen and bathrooms to include flooring and cabinets etc.. 44 new windows, 8 new glass block windows(basement, New 32 sq Roof, new interior and exterior paint. Section 8 rents are 1025 a month per side, It's currently listed for both 8 and public tenants. Refi and appraisal is in the process as well.  It should appraise for 100-105k and I will have 80k into it.  A little more than I would have liked but the property should cash flow nicely around 1,800-2,000 gross income.  

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

It's a beautiful house that needed saved.

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

Whole Sale deal

How did you finance this deal?

Hard Money

How did you add value to the deal?

Everything is new, also Dayton Ohio is adding 12Million in rejuvenation of a 1.5 mile strip of town on Salem Ave there next to this house. I'm hoping this will drive up property values in this neighborhood.

What was the outcome?

Currently waiting for Appraisal and refi

Lessons learned? Challenges?

Typical issues with Contractors