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!)

One house, one chicken coop, three incomes (#3)

One house, one chicken coop, three incomes (#3)

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Features

  • Multi-Family
  • 1800+ Square foot duplex AND 360sf SFD Home on lot
  • 3 bed + 2 bed + 1 bed
  • Traditional MLS purchase from investor

Financials

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  • $67,000 purchase price
  • <$4,000 rehab cost
  • $909 monthly NOI
  • 15.37% ROI
  • $80,000ARV (~$9,000 in net equity after rehab)

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Investment diary

This represents the first multi-family property we’ve purchased. This has been one of the best money making properties purchased in 2014. The property consists of one lot with two homes on it. One home being a duplex containing a 3 bedroom unit along with a 2 bedroom unit. The other home is a single-family detached 1 bedroom home that is extraordinarily small. The only rehab done on the property was the small SFD home that we essentially tore down to the studs, put new drywall & insulation in and put upgraded electric baseboard units.

The former owner had a terrible time renting the small SFD out, however had long term tenants in the duplex. After rehabbing the SFD we haven’t had much of a problem renting it out for $350/month. We’d love to have more small units like this one, however it’s very hard to find anything like it in the area.

On a  very funny note, the SFD property in the back (The small one) appears to be a chicken coop. The property had no insulation in and it was terrible as shown by the photo of the wall with shutters (You know, those wood things on your windows?) shoved in between the walls.

Property photos

A quick rehab (#2)

A quick rehab (#2)

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Features

  • Single-Family house
  • 1200+ Square footage
  • 3 bedrooms
  • 1 bathrooms
  • 2 Car detached garage
  • FSBO purchase

Financials

  • $23,500 purchase price
  • $<10,000 rehab cost
  • $378 monthly NOI
  • 13.5% ROI
  • $50,000ARV (~$15,500 in net equity after rehab)

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Investment diary

This was the second property we purchased September 2013. Rehab on it was pretty quick overall, although we had to push off work on property #1 to get this one done first as we knew #1 would take significantly longer to do. Total rehab time of about 2 months with the tenant being installed the first day of December. Prior to tenanting we had a break-in where someone stole about $50 worth of copper piping. Unfortunately that $50 in copper pipes resulted in about $500 in damage to the property. Certainly not fun but thankfully the home was not flooded and a neighbor informed us of the broken back door window first thing the next day.

 

 

Property photos

Our first property (#1)

Our first property (#1)

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Features

  • Single-Family house
  • 2000+ Square footage
  • 5 bedrooms
  • 2 bathrooms
  • 1 Car detached garage
  • Basement

Financials

  • $26,500 purchase price
  • $36,000 rehab cost
  • $625 monthly NOI
  • 12% ROI
  • $100,000-$115,000 ARV (~$52,500 in net equity after rehab)

Investment diary

This was the very first property we purchased. Overall it’s been a good investment with great equity gains due to the scope of work. Initially we had only estimated a $20,000 rehab cost for the property. It quickly became obvious that to truly get to a good condition would need to be sided (It had original asbestos shingles) and old wood-pane windows. This was a good example of why you need to have extra cash onhand to fix things ‘Just in case’. Property was purchased in July 2013, rehab was completed around Feb 2014 with a tenant in the house the following month.

Pre-Rehab photos

Post-rehab photos