Turning duplex rehab nightmare into cashflowing property

[Natalia Barriuso]

Investment Info:

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

Purchase price: $38,000
Cash invested: $130,000

This was my first total rehab. I don't think I will do it again, it took so long. This is a duplex. Top unit is a 1bed 750 qft. Bottom unit is 2/2 1200qft. I am using Airbnb for top unit. I rent the bedrooms of bottom unit through furnish finders to medical professionals.

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

I was looking for a buy and hold close to Purdue University.

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

I found it on the MLS.

How did you finance this deal?

All cash. I had sold my house in South Florida.

How did you add value to the deal?

Total rehab. I added more living space by adding the attached garage as a bedroom and moving the access to the upstairs bedroom to the outside deck.

What was the outcome?

This property cash flows well because I do short-term rentals. It is not in a great location but it works well. This is my first year renting it. I hope to be doing better cash-flow next year.

Lessons learned? Challenges?

It is hard to say. This project was very stressful for me. I would not have done it if my business partner hadn't talked me into it. I think I am glad that I did it because it showed me that I could. At the same time, I was right about it being too much for us to do but if I had listened to myself, maybe I would still be under paralyzes-analysis. Lol