Binghamton NY - The Life Changing Duplex

[Jerah Reeves]

Investment Info:

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

Purchase price: $139,000
Cash invested: $11,500

My wife and I purchased our first property (duplex), completed a light renovation, and rented out the other unit. We have since moved on, rented the other unit and are cash-flowing a solid amount monthly.

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

We knew that we could get ahead by house-hacking (purchasing a home and renting out bedrooms or units to cover our mortgage). We weren't sure how easy or hard it would be but we had our mind set on starting out this way.

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

We utilized and agent local to the area. We walked the property and offered that same day. We told the sellers that we would give them exactly what they are asking if they went with us right now! Luckily, the sellers were not greedy and wanted exactly what it was listed for.

How did you finance this deal?

We had saved enough to secure an owner-occupy loan and cover closing cost.

How did you add value to the deal?

While the home was built as a duplex (2 staircases, 2 front doors, so on...) it was converted to a single family home by the previous family. We went in, added a second, updated kitchen with new appliances, cleaned and painted throughout.

What was the outcome?

We rented out the renovated unit which covered our mortgage and water bill. We have now moved on (as of last month) and are renting both units. Now our mortgage is covered at that home, as well as the mortgage covered at our new home. We are cash-flowing around $550-$585/month after expenses.

Lessons learned? Challenges?

Too many to list but beyond the technical skills that come with renovating portions of a house from scratch (carpentry, electric, plumbing) We learned that my wife and I are capable of anything we put our minds to.

We would have liked to negotiated better with the purchase of the home (unforeseen issues) but we didn't have that wiggle room because of time constraint and a very hot market.

Many other things I could say but I am out of characters.

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

No one that we'd recommend but we'd love to connect with you if you're reading this and are an investor, lender, agent...