Rehab Duplex in Oklahoma City

[Matthew Brill]

Investment Info:

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

Purchase price: $56,000
Cash invested: $50,000

1924 duplex in metro OKC.
2- 3 bed 1 bath units

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

This was my intro into real estate investing. I was looking for cash flow.

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

Found it on the MLS. It was being sold by an estate. It was way over priced. I made an offer that wasn't low enough. It got accepted instantly and I thought I was in trouble! After the inspection I was able to get the price down a lot.

How did you finance this deal?

Conventional loan, savings

How did you add value to the deal?

Torn down walls to open it up, resurfaced floors, remodeled kitchens, painted, installed HVAC systems.

What was the outcome?

Got the place rented out (raised rents to market) and it cash flows great! The property appraised for $180,000 a couple years later and I was able to get a HELOC.

Lessons learned? Challenges?

The rehab went over budget (obviously), but I was able to create more value and get rents higher than I initially expected. I had difficulty with my first property manager that I eventually had to fire.

[Will Fraser]

Well done @Matthew Brill!  No doubt this was a scary hairy one, and you came out shining on the other side!

How did you do this scope of work for $50k? by the way?  That feels like a great price for going to the studs, adding HVAC, and putting it all back together.

What's next for you?