Duplex with sick cash flow!

[Cindy Harney]

Investment Info:

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

Purchase price: $150,000
Cash invested: $60,000

Duplex (each 2br/1ba) that is currently Airbnb on one side and short, long term rental on the other. Airbnb averages 17 nights per month ($110/night) and short, long term side services clients who are in between housing. Currently rented at $2200/mo.
Paid $150k for it and it's worth $220k. We did about $20k in renovations.

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

Sheer cash flow and the price was too good to pass up.

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

My handyman told me his dad was looking to sell a property so I inquired further. He sold it well under value.

How did you finance this deal?

Conventional financing with 20% down, then $20k for renovations

How did you add value to the deal?

It needed a complete renovation to generate the most monthly cash flow. We tiled floors, replaced cabinets, added granite, new appliances and renovated the bathrooms. It was previously renting for $750/month per side.

What was the outcome?

Sick cash flow and filled a need for short term housing.

Lessons learned? Challenges?

Just pay people to do the renovations for you. As much as I 'saved' painting it myself, I could have gotten it rented sooner if I'd just had others do the work.

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

It was a FSBO, but I'm a huge advocate of my own skills as an agent!