Second Investment Property 2021

[Mandy Kulesa]

Investment Info:

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

Purchase price: $129,900

Second investment property purchased - Duplex with tenants in one unit and a total rehab project on the other. Fixing it up to be a Short Term Rental on one side for now while keeping current tenants to pay the mortgage. This property came with a list from the City to repair and inspect since the prior owner did not. It wasn't officially a condemned property, but close to it.

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

As a Realtor, I now have access to homes that become available both on and off market. This one happened to be listed at the right time we were interested in purchasing another, but we knew we wouldn't pay list price for it considering the amount of work it would need.

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

This property was listed on the MLS and we were one of the first ones to get into it and submit an offer. Being we are in a sellers market currently, we knew we had to be competitive but not over pay - this place needed a lot of work. It was neglected for many years. We offered less than list price and did due diligence to uncover all the things that needed to be done - including that of the city the seller failed to mention.

How did you finance this deal?

Construction and city loan to rehab and will refi into conventional

Lessons learned? Challenges?

Do your homework. Not all sellers disclose everything they should.