Findlay Duplex, light remodel

[Sean Brauneller]

Investment Info:

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

Purchase price: $106,000
Cash invested: $34,985

Findlay Duplex, 2/1 down, 1/1 upper, 2 car garage, buy and hold.

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

Cash flow in retirement, nets out about $450/mth today after all PITI, capital exp, vacancy, maintenance.

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

MLS, escalation clause won the deal

How did you finance this deal?

Conventional loan 25% down

How did you add value to the deal?

New paint, light remodel, removed trees in backyard opened up yard space, new sidewalk, concrete in garage and automatic garage doors. New kitchen cabinets upstairs, new cabinet doors downstairs. Changed all electrical outlets/switches. Tiled bathroom upstairs, added new led lights and ceiling fans throughout.

What was the outcome?

Higher rents, appreciation, approximately 60k in equity. Plan to refinance, pull our 50k investment back out and have zero cash in the deal. REPEAT…

Lessons learned? Challenges?

100% must screen and verify all applicants!!! Omg! We almost took someone’s word. Treat it like a business. Call references. We use RentRedi. We believe we should have looked for other ways to finance with less than 25% down

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

Nicole Hartschuh, Danberry Realty