Renovated Duplex, First Investment

[Davin Kieff]

Investment Info:

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

Purchase price: $268,000
Cash invested: $16,800

This was my first investment. I was very nervous about jumping into a first deal due to stretching the amount of cash I had on hand, but I could not have asked for a better investment. Everything turned out great for me and was my door out of the renting hamster wheel.

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

I wanted to get out of paying rent, but I did not want to fall into the cash flow trap that is brought by buying a new single family home. I wanted my first home to be a house-hacking duplex, and that is exactly what my girlfriend and I settled on.

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

I found this deal through a local realtor. We were really early on bidding the property (made offer first day on market). Traditional negotiations took place.

How did you finance this deal?

I financed this deal by taking a loan from my 401k and using an FHA loan.

How did you add value to the deal?

I was the primary investor and analyst for the investment.

What was the outcome?

Great positive cash-flowing investment!

Lessons learned? Challenges?

The inspectors do not catch everything. I now know more of what to look for when assessing a property. House Flippers typically skip many corners to save money on homes.

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

I worked with a local realtor and lender.