New Property Buy! First Duplex!!

[Adam Cole]

Investment Info:

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

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

Current rental income : $700 (single unit occupied)
Expected rental income once renovations are complete : $1900 (both units occupied)

Renovation schedule:
1) Add 1/2 bathroom and remove useless coat closet
2) Rebuild kitchen and update with new cabinets, counters, and LED recessed lighting
3) Redo parking lot (big money investment) and refinance property

If the property appraises for +$170k then we will turn this into a flip and move onto the next one!

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

I saw the potential that property had and the price-point showed promise in future cash flow

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

It was found on Redfin and negotiated through the traditional method. We had originally offered $140k but we were able to buy it for $130k after several repairs were noted

How did you finance this deal?

Cash initially and we are currently looking into cash out refi options

How did you add value to the deal?

Renovated kitchen
Added 1/2 bathroom
Planning to lay new concrete
Improved the main bathroom with updated fixtures

What was the outcome?

We will see!!