Second investment property (Duplex)

[Chris Omlor]

Investment Info:

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

Purchase price: $91,500
Cash invested: $25,967

This was our second investment property. Much better outcome than our first. The main difference is this property (duplex) is set up for tenants to cover their utilities, we only pay trash as required by Madison County. This one was recently completely renovated inside, tenant occupied and we bundled this deal off-market with the owner of our first investment property. The owner was switching out of buy and hold rentals to just fix and flips and needed cash.

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

Bought off-market from the seller of our first investment property.

How did you finance this deal?

25% down, 30-year Conventional loan at 3.5%

Lessons learned? Challenges?

Lesson learned, always count the costs of utilities, and if at all possible to have tenants responsible for their own utilities in our case our cash flow is much better on this deal. The property was designed as a duplex with separate HVAC and water.