Deal #1 - Fourplex in Gastonia, NC
Sold! Estimated Profit - $141,094
We all start somewhere, and this is it for me! Enter my first investment - a 100 year old multifamily home with four 1br/1ba units rented out for about half of market value at the time of purchase. This used to be a 3,100 sqft farm house that a previous owner converted into a quad.
The process wasn't easy...3 of 4 tenants had to be evicted, I ran into my first issue with a city complaint, I did a lot of work myself, and I went way over budget. Eventually we got rents up, refinanced the property to pull out about half of the capital I'd put into it, and it started performing!
As the 2021 real estate market around the Charlotte area got more competitive, there was an opportunity to sell that couldn't be passed up. When I looked at my ROE and not just ROI (I wrote an article about this concept when I sold Bank St) it was a no brainer.
The deal sold for $400,000, and I did my first 1031 exchange with the proceeds to purchase the Hubbard Duplex!
List Price: $210,000
Purchase Price: $160,000
Closing Date: September 13, 2019
Source of Deal: MLS
Funding Source: Conventional
Size: 3,098 sqft
Estimated Rehab Cost: $15,000
Estimated ARV: $215,000
Appraised Value: $234,000
Refi Date: October 30, 2020
Actual Rehab Cost: $45,000
Final Cash Left In: $30,000
Final Cash Flow: $850 ($3,100 rent)
Final COCROI: 30%
Sale Price: $400,000
Sale Date: October 29, 2021
Estimated Profit: $141,094