Huge shout out to all the BP members who helped out with this win! I had a First Duplex Numbers Check and Zoning Issue with 1/1 Duplex thread that helped confirm numbers and helped me navigate a zoning issue (SFR split into duplex and considered Non-Conforming since not zoned for Multi-Fam).
Went under contract on my first duplex in January. Two 1/1s ~700 sq/ft each. Closed at 118k and had a 15k budget, as it was mostly cosmetic. My older brother came down and did the rehab and my wife and I helped out on the weekends. I read David's "BRRRR" while under contract, and got a lender to close in cash vs finance and dropped 10k off the purchase price. Definitely should have read the book BEFORE, but action inspires action and I crushed through a bunch of books while waiting to close on the property.
When I ran my initial numbers, I figured I'd leave 15k in the property after the refi (thought I'd get an ARV of 170k(119k back)), and that I'd get $725 a side and bring in 5k a year (416/mo) income and put aside 3k a year (250/mo) aside for MX/VAC/CAPEX. ~33% CoC return, I'll take it.
Rehab went awesome. Wife found high quality materials on sale (LPV flooring, quartz countertops, subway tiled showers/backsplashes) and we actually stayed on budget for our first go, so that is a huge win in and of itself. So we're all in at 134k.
Rents came in at $850. More cashflow, awesome! Looking more like 6-7k a year/3k CAPEX for income.
Finally, we got the long awaited appraisal... 226k! That's 154k back to us (158k minus ~4k closing costs) which is 20k in our pockets, PLUS we have all of the rents for the units I figured would be used for closing costs that we keep for the next project.
If you're sitting out the with analysis paralysis, just make a move! In the poem "If" by Rudyard Kipling, he says "If you can dream and not make dreams your master, think and not make thoughts your aim. If you can meet with triumph and disaster, and treat both imposters just the same." You can dream and think into oblivion... you have to take action and you'll learn along the way. Heck, you may even hit a grand slam on your first property!
Best of luck! And thanks a ton to the members who helped out with questions and to Brandon and David for pumping out the info and motivation!
