Buy and Hold Duplex in CT

[MIlton Monzon]

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Connecticut.

Purchase price: $132,000
Cash invested: $36,000

Very good condition older duplex in Connecticut. Inherited tenant of two years with very positive background and history and wanting to stay even with market rent increase. Generating great cash flow with a 16% COC return. Blessed with a fantastic agent who was there during the long distance investing obstacles. Goal is for long term hold and continue to grow for more near by.

What made you interested in investing in this type of deal?

Reading all the forums and seeing all the success investors are having in the bigger pockets groups. Already had experience with a single family and a condo. Wanting to expand my real estate portfolio.

How did you find this deal and how did you negotiate it?

Found it through agent referral when original buyer backed out. Negotiated 13k off asking price. Originally offered 25k less but they countered meeting us in the middle. Ended up appraising 3k more than negotiated price.

How did you finance this deal?

Private money for downpayment and bank loan.

How did you add value to the deal?

It does have knob and tube wiring so electrical update will be happening in the middle of 2022 but that helped negotiations.

What was the outcome?

Able to raise rents to higher market rent and have a property ready for move in.

Lessons learned? Challenges?

Consider closing cost to be higher than calculated and expected. Closing cost came in 2k more than I had budgeted for but luckily I had reserves to cover it.

Challenges would be being patient with oneself and the process. Took 45 days to close and throughout the process when asking questions there was a lot of silence from the lender and seller when important stuff came up. Luckily the lender would follow through with everything they promised.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Worked with Brenda Engel an amazing agent especially as an investor and RCN capital for lender. They were great to work with and follow through on their services.