First Buy and Hold Duplex from 2019

[Matthew Claeys]

Investment Info:

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

Purchase price: $425,000

Great 2/1 and 2/2 duplex with large square footage and yards. Did a full cosmetic upgrade inside and outside.

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

Diversifying my active income with rental properties.

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

This was my own listing. When the first buyer walked after inspection, and negotiations, I stepped in and bought it from the client at the price they were offering the original buyer.

How did you finance this deal?

30yr fixed investment loan and loan on primary for down payment.

How did you add value to the deal?

We did a full cosmetic update on inside and outside. New kitchens and baths, new appliances. Updated all paint, including doors and moldings, all new hardware. All new fixtures throughout.

What was the outcome?

It has been a great steady property with very high profit both in appreciation and cash flow. Property has increase in value by $200,000. We refinanced the loan a few months ago, and got back all the renovation costs, plus increased cash flow another $300-$400 per month. Property now has positive cash flow of $1200/month.

Lessons learned? Challenges?

Property was purchased vacant. Renovations and repairs prior to being rented went to adjust basis, and had to be amortized.

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

Represented myself on the purchase.