Big profits at Norwood, NC Duplex

[Titus Dorman]

Investment Info:

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

Purchase price: $110,000
Cash invested: $46,000

This is a duplex 3b1ba each side, property sits close to Lake Tillery.

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

Big wedge deal and excellent cash flow. I knew the rents were way below market value.

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

Tax searched the property on MLS, sent a personal handwritten note. After contacting the seller, we agreed on a price that worked for both parties. A terrible tenant had done a lot of damage; I decided to buy the property regardless of whether the seller could get them out.

How did you finance this deal?

Conventional loan. We put 25% down.

How did you add value to the deal?

We put 10k into one side and took the rent from $500 to $875.

What was the outcome?

Property is worth about 60k more then we paid for it and we are getting great cashflow.

Lessons learned? Challenges?

Know your numbers and the area you're investing in; I had a big gut feeling about this property because I knew the area. Even when things looked almost impossible with the bank, we pushed It to closing, and we’re pleased.

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

I'm a realtor so that helped.