Flint St SFH to Duplex

[Joshua Granberg]

Investment Info:

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

Purchase price: $19,000
Cash invested: $62,000

Purchased this SFH for $19,000. Invested $62,000 in a complete remodel and added a second studio. Cashout refinanced for $120,000. Now it has an infinite ROI and $650 positive cash flow after all expenses. It's been quite a project!

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

I knew I would be living in the area for a couple of years and wanted a fun project to work on.

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

Network. Through a real estate agent I know that works with Repos.

How did you finance this deal?

Purchased for cash and invested about $20,000. Then did a HELOC for the rest of the rehab. Once it was finished, I did a cashout refinance, got back all my money and paid the HELOC.

How did you add value to the deal?

Complete remodel of the main house. There was a detached garage that I turned into a studio apartment with a full kitchen and full bath with a loft bedroom.

What was the outcome?

I turned the SFH into a duplex. Once all was done I had removed all of my initial investment and it still cash flows about $650/month.

Lessons learned? Challenges?

It ended up being a much more extensive remodel than expected. The hardest thing was getting good contractors. I went through SO many! It's just so hard to find good work.