Investment Info:
Small multi-family (2-4 units) fix & flip investment.
Purchase price: $326,000
Cash invested: $98,000
Sale price: $605,000
This is a duplex in the Little Haiti area of Miami. It is a hot up and coming area with a lot of potential for growth. It is also unique because it is zoned for Airbnb and short term rentals which is rare in Miami.
What made you interested in investing in this type of deal?
In the early months of Covid, I decided to invest in a duplex in Miami because my usual market (Central Maryland) was getting too competitive. It was a huge gamble because I had never invested in Miami before, let alone out of state at all. I flew down, met some local contractors, formulated a rehab plan and put the crew to work.
How did you find this deal and how did you negotiate it?
This was a tax sale and I was able to bid on the auction online from my home in Maryland
How did you finance this deal?
Because I did not have any connections with any local lenders in Miami, I had to pay for this deal in cash.
How did you add value to the deal?
The rehab was a complete overhaul of the units. First we replaced the roof. Then we gutted both kitchens and rebuilt them with new cabinets, top of the line kitchen hardware, stainless steel appliances and recessed lighting. We also gutted the bathrooms and replaced the flooring with vinyl Planks. One of the units was a one-bedroom which we converted into two smaller bedrooms. This was to better appeal to the Airbnb landlord buyer. Finally we added a laundry room in a common area.
What was the outcome?
The property did not sell at the price we had hoped but we took a deal at a discount. We still ended up making a decent profit.
