Owner Occupied Duplex for first investment property

[Todd Aaron]

Hi everyone!

This past weekend I got my first investment property deal under contract.  Currently waiting for scheduled inspections.  I have an option period of 21 days just in case something is revealed or whatever.

The property is a duplex that is a 3 bedroom / 1 bath on each side, and one side is rented and the tenants have been there for 3 years and are interested in staying. The seller mentioned that they were concerned about having to possibly leave as a result of the sale.  Thats the last thing I want. I told the owner that I want to keep them happy and have them stay. So that seems pretty positive. 

I am taking advantage of the low money down and good rate for an owner occupied type conventional loan, so I will move into the vacant side for the time required to satisfy the loan agreement (usually two years), then move on and rent the second side.  In the mean time, while I am there, I plan to do upgrades and some remodelling to that side which should allow for a higher rent once the time comes to put someone in there. 

This place needs some work - not like massive amounts of big things, but more like a lot of little things.  I am a do-it-yourself type and enjoy the type of work that this would benefit from having done, so it will be a good match i think, considering having to be there for a couple of years. 

The one rented side will pay all but about $150 of the Loan, Taxes and Insurance, so it will basically cost me $150 to live there.  Not as awesome as these totally free deals I see out there, but I thought that wasn't bad being my first attempt.  And after I move out, the other side will make it a nice positive income property. 

It also has some character - it is located in a national historic district in an area that had seen decline in the past but has been on the rise for years now with some properties converted to bed and breakfasts and other converted to commercial use such as law offices and doctor's offices.

Anyway, just wanted to share... excited about the first step into investing.

Thanks!!!! :)