The First 2 Bedroom 1 Bath Duplex - Birmingham, AL 35217

This was a beat down duplex in Tarrant area of Birmingham, Alabama. Originally listed at 145k, price dropped to 125k 4 months later and then price dropped again to 99k. I offered list and after the inspection came back at 85k and closed.

Rehab Needed To Meet Section 8 Standards:

UNIT A:

- Interior trash removal

- Electrical work done throughout

- All section 8 items

- New flooring in living room

- New flooring in bedroom 1

- New flooring in bedroom 2

- All new vinyl flooring installed in kitchen

- New flooring installed in bathroom

- New flooring installed in hallway

-New flooring installed in laundry room

- New tub installed + recaulked

- Entire unit repainted

UNIT B:

- Entire unit repainted

- Electrical work done throughout

- All section 8 items completed

- Interior trash removal

- New flooring installed in living room

- Bathtub re-caulked and re-glazed

- New flooring installed in bedroom 1

- New flooring installed in bedroom 2

- Garage cleaned out + made safe

- All interior trash removal from both units

- All exterior trash removal

- All large furniture removal from both units

Total Bid: 36,500

Rehab Begins (12/11/2023):

Here's a video snippet before the rehab when I was in Birmingham in December 2023 touring the property after purchasing. It was in rough condition to say the least...

Rehab Complete (1/10/2024):

Here's a few blurry shots of the rehab once it was completed, the entire interior was turned around.

Numbers:

Initial Cost:

Purchase price: 85,000

Rehab cost: 36,500

Closing costs: 1,500

ADDITIONAL Rehab, Replaced both sewer lines: 9,500

Total: 132,500

Monthly Income:

Monthly rent: 1,937 (Both Sides, with 1700 of it being paid by HUD, guarenteed every month.)

Property management: -193 (10%)

Property insurance: -131 (1,581 annually)

Property taxes: -101 (1,212 annually)

Total: 1,512

**Does NOT include debt payments**

Summary: Initial cost: 132,500

Net annual cashflow: 18,144

Annualized cash on cash return: 13%

**Note: the numbers detailed here are missing a few costs such as utilities cost during rehab, property management new tenant leasing fee and appliances for the unit.