Property was bought with a 203K FHA renovation loan for $435,000 + $65,000 renovation loan for a total of $500,000.
The renovation consisted of redoing the exterior, some structural work, installing a few new windows, some electrical work and small FHA requirements repairs.
The property was fully rented with an income of $5,000 a month.
As the property was purchased with an FHA, I gave notice to one tenant and occupied the smaller unit, effectively living for free for a year.

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

The unbelievable cash flow. I got over 100% return on my cash within one year
The possibility of using the FHA 203K renovation loan with only 3.5% down
The property has 7 parking spots
The property is located 5 blocks from the train station.
The property was fully rented at market rents with long-term tenants.

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

Found in the MLS, offered over asking price, AS-IS purchase contract to entice the seller to accept my offer & not do any further showings.

How did you finance this deal?

FHA 203K renovation loan

How did you add value to the deal?

Through the renovation loan, I've completed the envelope: the exterior, some new windows, roof repairs, and some interior repairs.

What was the outcome?

I used $17,500 as downpayment and within one year I got $18,000 back

Lessons learned? Challenges?

1. When using a 203K consultant you don't need to pay for a home inspector too. I wasted $1,000 on a double job.
2. Have any agreements with the tenants in writing. A tenant asked if I can give him a rent reduction & I said "yes" if he can be the janitor.I signed a new lease with a $150 price reduction without mentioning that he'll be the janitor. When I called him he acted as the conversation didn't happen & pointed out that's not in the lease. $1800 lost in one year.

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

Absolutely.
I was my own Real Estate broker, and I am an expert in finding these type of deals and I have a spectacular team of people put together for my clients, which I am happy to refer out!