Deal #1 - Fourplex in Gastonia, NC

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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!

PURCHASE DETAILS

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

Bed/Bath: 4br/4ba

 

REFI DETAILS

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 DETAILS

Sale Price: $400,000

Sale Date: October 29, 2021

Estimated Profit: $141,094

 

BEFORE

 

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Street View
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AFTER

 

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Gastonia Fourplex Blog