First duplex experience

[Eric Larson]

Investment Info:

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

Purchase price: $95,000
Cash invested: $8,000

Nice ranch duplex that was under rented and needed some normal attention and love.

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

I saw value in the location and that the rents were under market. Even under-rented the units were cash flowing well. Improving the units and improving rents has made this duplex a good buy.

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

I'm and agent and this was simply an MLS deal. Offer, negotiate, done.

How did you finance this deal?

Typical conventional financing with a local bank that we have a relationship with.

How did you add value to the deal?

There were some repairs and improvements that needed to be done, but were not pressing issues. Those were done within the first several months. With tenant changeover we have brought rents closer to market.

What was the outcome?

This is one of our better cash flow holdings. Transitioning to duplexes has be transformative in our strategy. Prior to this unit we were primarily single family investors.

Lessons learned? Challenges?

Covid was a challenge a the beginning. We closed on this just before covid hit and learning to navigate that and communicate with the tenants was interesting.

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

I am a licensed Realtor.