To start which might be obvious to some but I am new to bigger pockets and excited to get going.
How it happened; I was tired of sitting on the sidelines not getting involved with real estate. All of the multifamily homes in my area were selling in the mid to low 300's. For months I watched these properties go on the MLS then go contingent in a day or so. The hard part for me that at this price I could not cash flow. I was so eager I told myself that no matter what if something pops up under 300k I am buying it (yes I know not smart, but every mistake is failing forward, right?). So then my duplex showed up on the MLS for 280K. I called my agent and got a viewing the same day. After walking the property I knew it had some serious problems with water and the sub floors down to the joist in the kitchen would need to be replace. Knowing this I still put in a full price offer the same day and tried to get it tied up. This just being a crazy market they were not willing to negotiate that much and we agreed on 270k and the place was mine!
The Numbers:
Purchase price 270k
down payment 67,500
closing cost 8k
rehab budget 15k
Current rent on the one unit not being renovated $975.00
Rent for renovated unit $1200.00
Potential cash flow after paying everything including cap ex and vacancy is $693/month
Well I am a month and a half in and boy has it been work!! This work is done on nights and weekends as I am still in the rat race (for now). I will let the pictures speak for themselves. I have a little construction background, but honestly this is a lot of youtube. I am kind of calling this method the "Youtube Warrior".
Before Demo
Before Demo
Water damage in full bath at toilet
Demo was nice because you can see progress!
Closet with washer rotted to the plywood sub floor
Sub floor showing water heater leak!
Supporting the walls to replace the sub floor was a PAIN!! it was a puzzle how to support the walls and slide the full sheets of plywood in.
Nice to get the plywood down
It was nice to get the under-layment done. This process was slow and I used screws so a lot of time on your hands and knees
Drywall up. Felt nice to look like a actual living space again. Drywall was easier to install then expected
New pex for the tub/shower. this part was super frustrating and time consuming.
