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

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

dup

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)

bg4

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)

bg1

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