Duplex #1
Posted on October 25, 2007 - Filed Under Business |
In the late summer of 2005 my first duplex was bought. For a number of years I had talked at lengths about procuring property. Finally, I got up the nerve to actually do it. And because Lady Fortune favors those who take opportunities, I got a nice deal right off the bat.
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Craftsman Bungalow with a small "mother in law" house in the back. |
For me: there were changes. No longer an apartment dweller, I was now a responsible home owner and a landlord. In addition, both houses were in need of a make-over. Project Manager for a house renovation. Overwhelming for a first timer?
It’s my nature. I perform best when the situation appears over-whelming.
The back house went easy enough. Only a fresh coat of paint and new carpet were required. To save money, I did the painting myself. Patching holes, repairing cracks my life suddenly became "On the Job" training.
A different story for the front house. The walls had been painted some wild and bright colors. The hardwood floors: buried underneath years of carpet. The kitchen area, as it was, nearly non-existent. This meant knocking down walls.
Money was tight. There was simply not enough funds to redo the entire house. As with everything, there was an opportunity. The decision was made to repaint the exterior of the house, redo the hardwood floors, and paint the interior. The biggest expense, the kitchen, would have to wait.
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New colors were selected, the exterior repaired and patched. Finally the painting began. The transformation of the house was a near miracle. By cleaning up the yard, hacking away bushes, the house completely changed. |
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Months and months of
renovations: contractors disappeared for days, even weeks at a time.
After changing out a few laborers, progress was made. The results were
nothing short of a miracle. (Here are some photos).
My running joke at the time: I bought the worst house on the street. Now I have the best looking house on the street!
During the ten month renovation, the market had changed. Two options: either wait until the possibility of a sale took place or borrow money against the property and move tenants in. The second option was taken and new tenants were found for the Bungalow.
One question always asked: how did I afford to do all this? I qualified for a 3% down program. Once the exterior was painted and hardwood floors refinished, the value of the property increased 23%. At that point, the property was refinanced and my loan program changed from 97% to 80%. This allowed me to take out a HELOC against the equity to finish the house.
With the duplex fully rented, and myself homeless, the quest started for the next property.
Duplex #1:
Current Status: Fully Rented.
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