Another Turnkey Dutchtown Duplex

[Alex Bekeza]

Investment Info:

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

Purchase price: $100,000
Cash invested: $25,000

I saw this nice little turnkey duplex on the same street as a few of my other properties. I had recently refinanced two nearby duplexes and they had appraised nearly 40% higher than the purchase price here and I felt this one was actually in superior condition. I felt that this price looked too good to be true but my inspection team didn't reveal anything too concerning so I proceeded to offer $2k over asking ($100k) with a 2% seller concession (simply so that I could meet a lender's minimum of $100k purchase price). It brings in $1,200 in rent a month and I have a $75,000 loan (30 year fixed @ 4.375%).

We continue to be very aggressive on 2-4s in Dutchtown, Tower Grove, Gravois and the surrounding areas.

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

Already owning very similar properties in the area made this a seamless addition.

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

MLS. Offered $2k over asking simply to meet my lender's $100k minimum purchase price (but I also got a 2% seller concession to make it a wash).

How did you finance this deal?

30 year fixed DSCR based commercial loan @ 75% LTV @ 4.375%.

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

Norm form Sage Inspections is the man!
Provident Property Management manages all of my STL rentals.