Newest small multifamily added to my portfolio

[Sam Collins]

Investment Info:

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

Purchase price: $280,000
Cash invested: $78,000

Located in the heart of Cleveland, Tx. This beautiful 3,550 sqft 3 bed 2.5 bath duplex sits on .5 acres. This will be a buy and hold investment property added to my portfolio.

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

biggerPockets podcast

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

While out driving for dollars with my wife we noticed this duplex with a for sale sign. Contacted out REA and set up a showing for the same day. We went home and ran rental comps and ARV comps for the area and set our min and max offer numbers. Returned later that day to view property and was in better condition than we thought. Asking price was at 350K put offer in at 250K and ended up settling at 280K with seller paying closing.

How did you finance this deal?

Financed through mortgage broker with conventional

How did you add value to the deal?

Currently replacing the flooring, Ac units, Heater units, and adding additional parking

What was the outcome?

will be rented within the month.

Lessons learned? Challenges?

had a few hold ups on the lending side of things. the lender we used just started her own company. she has been a lender for 20 plus years for another firm. There was a few learning curves for her which slowed closing by 21 days. Also appraisals in the area are way behind so it took forever to get an appraisal done.

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

Yes, Kirby Kneale did an amazing job representing us in all of our transactions. she is the rockstar on my team!