Duplex Purchase, my first deal

[Allan Konnagan]

Investment Info:

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

Purchase price: $98,000
Cash invested: $7,500

I bought a duplex with a 203k loan fixed it up and live here.

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

location.

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

My mother in law found it. it was a FSBO. it took a year of negotiating to get it at the price I wanted.

How did you finance this deal?

203k.

How did you add value to the deal?

I did a complete rehab, new kitchens, baths, central hvac, windows etc.

What was the outcome?

Its been a great rental that keeps long term tenants. the equity has allowed me to purchase my second investment property.

Lessons learned? Challenges?

Biggest challenge was the rehab. I didn't have connections with good contractors and didn't know how to find them. There was a lot of bad quality work that needed fix and a lot of headaches. Always get references and walk the contractors current jobs to see how they work and look at their quality.

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

Not on the first deal. I am now licensed.