A long-term second duplex (#5)

A long-term second duplex (#5)

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Features

  • Multi-Family
  • 3200+ Square foot duplex
  • 3 bed + 3 bed units
  • Traditional MLS purchase from investor

Financials

  • $36,500 purchase price
  • <$10,000 rehab cost
  • $750 monthly NOI
  • 19.33% ROI
  • $70,000ARV (~$23,500 in net equity after rehab)

Investment diary

Unfortunately this property was put on the back burner to work on other properties. Due to this it is still in rehab and is scheduled for completion quite soon. This is due to a very large water leak, very similar to property #4 requiring the sidewalks to be dug up.

We finally did put a temporary tenant in it as of January 2015, to do a transition to property #12 which meets their needs a little better. We do think this will be done and rented out by Feb 1st 2014. A full 10 months after purchase.

Photos (Some pre-rehab and some post)

 

Fleas, blown water lines & a fire (#4)

Fleas, blown water lines & a fire (#4)

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Features

  • Single Family
  • 1200+ Square feet
  • 3 bed (Converted from 2br)
  • Foreclosure listed on Auction.com

Financials

  • $25,000 purchase price + $2,500 buyer premium
  • $15,250 rehab cost
  • $480 monthly NOI
  • 14.25% ROI
  • $75,000ARV (~$9,000 in net equity after rehab)

Investment diary

This initially was planned to be a quick rehab with total costs of less than $10,000. It quickly became quite apparent that we had miscalculated the rehab need on the property. The wiring in the home was absolutely terrible and represented a MAJOR fire hazard. In the end we went around $5,000 over budget, then a month after putting a tenant in it had a major water leak that resulted in us spending ~$600 to tear up the sidewalk and replace a underground water line. Additionally after tearing out the ceiling of a room it became appartent that the former owner used something similar to barn siding (which had been burnt severely) to repair a ceiling.

One major value addition to this home was adding a 3rd bedroom on the 1st floor. As it was originally set up it had two living areas. We converted one of the living areas to a formal bedroom by walling it in correctly and adding doors. The cost to do this was a few hundred dollars and allowed us to increase the rent by $100/month.

Overall it’s been a good property for us, but there were many, many , many problems along the way.

  • The main water line to the house blew up not once but twice
  • Our 1st tenant left in October, doing ~$500 in damages to the property
  • Said tenant left a ton of fleas, of which it took us no less than a dozen flea bombs to kill

 

Property pre-rehab photos

Post-Rehab Photos (Look at the kitchen!)